Boeing machinists in the Seattle area have voted against a new labor deal that included 35% wage increases over four years. This has led to an ongoing strike that has halted most of the company’s aircraft production. The rejection of the contract is a setback for Boeing, which is already facing financial challenges, including a $6 billion quarterly loss. The strike is costing Boeing about $1 billion a month and has prompted the company to announce job cuts. The machinists’ union had originally sought even higher wage increases. The latest proposal also did not address the issue of a pension plan that was lost in a previous contract. Boeing has agreed to build its next aircraft in the Pacific Northwest as part of the new contract. The union, however, is not satisfied with the proposed agreement and plans to return to negotiations. The strike adds to the series of problems faced by Boeing, including incidents with its planes earlier in the year. The extended strike is also impacting the aerospace supply chain, with Spirit AeroSystems announcing temporary furloughs of workers due to the strike. Overall, the strike is a significant challenge for Boeing and its suppliers as they navigate the ongoing labor dispute and its financial implications.
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Boeing machinists refuse to accept new labor agreement, prolonging strike
