Boeing machinists rejected a new labor deal that included 35% wage increases over four years, extending a strike that has halted most of the company’s aircraft production in the Seattle area. The contract was voted down by 64% of the union, causing a setback for the company, which reported a $6 billion quarterly loss and warned of continued cash burn through 2025. The strike is costing Boeing about $1 billion a month, impacting its workforce and supply chain. The new CEO, Kelly Ortberg, had prioritized reaching a deal with the machinists to improve the company’s future after years of safety and quality issues.
The strike, which began on September 13, is the first by the machinists since 2008. Workers were seeking higher pay to address the rising living costs in the Puget Sound area. The latest proposal included 35% raises over four years, increased 401(k) contributions, and a $7,000 bonus, but did not offer a pension plan.
Boeing also committed to building its next aircraft in the Pacific Northwest, a key demand of the unionized workers. Despite some gains in the agreement, the union president stated that they will push to return to the negotiating table to address members’ demands.
The labor dispute adds to Boeing’s challenges, including previous safety incidents and ongoing production issues, particularly with the 737 aircraft. The strike not only affects Boeing but also impacts its supply chain, with companies like Spirit AeroSystems considering possible layoffs or furloughs if the strike continues.
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