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Boeing union members refuse proposed labor agreement, prolonging strike


Boeing machinists recently voted against a new labor deal that included a 35% wage increase over four years, leading to an extension of a more than five-week strike that has halted most of the company’s aircraft production. The contract was rejected by 64% of voters, causing setbacks for Boeing, including a $6 billion quarterly loss. The strike is costing the company about $1 billion a month.

The new CEO, Kelly Ortberg, had made reaching a deal with the machinists a priority in order to address safety and quality issues. Ortberg outlined his vision for Boeing’s future, which may involve slimming down the company and focusing on core businesses. The strike, involving more than 32,000 machinists, began on Sept. 13 after previous agreements were rejected.

The latest proposal from Boeing included 35% raises over four years, increased 401(k) contributions, and a $7,000 bonus, but did not include a pension plan. While some gains were made in the new agreement, the union felt it did not meet their demands and plans to return to the negotiating table.

The strike comes at a challenging time for Boeing, with previous safety issues and the ongoing impacts of the pandemic on the aerospace industry. The extended stoppage poses challenges for the aerospace supply chain, as suppliers may need to train new workers quickly to meet production demands. Spirit AeroSystems announced temporary furloughs and possible layoffs if the strike continues.

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www.nbcnews.com

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