Boeing’s ongoing strike took another significant turn on Wednesday as factory workers overwhelmingly rejected the company’s latest contract offer. This decision, which marks a major setback for new CEO Kelly Ortberg, could further exacerbate the financial woes of the struggling planemaker.
The union representing Boeing’s workers, the International Association of Machinists and Aerospace Workers (IAM), has been negotiating with the company for several weeks. The latest offer, which included a 35% wage increase over four years, was rejected by 64% of union members. This comes after a previous contract proposal was voted down by 95% of workers last month.
The rejection of Boeing’s offers reflects deep-seated resentment among workers who feel they were unfairly treated by the company in previous negotiations. The union has been seeking a 40% pay raise and the reinstatement of a defined-benefit pension. Additionally, workers have expressed frustration over the company’s spending on share buybacks and executive bonuses.
The ongoing strike has had a significant impact on Boeing’s operations. The company has been forced to halt production of several of its most popular aircraft models, including the 737 MAX, 767, and 777. This has led to disruptions in the supply chain and financial losses for Boeing and its suppliers. It has also disrupted production of military derivatives of Boeing’s civil line, including the KC-46A tanker/transport and the P-8A Poseidon maritime patrol aircraft.
