Boeing machinists voted against a new labor deal that offered a 35% wage increase over four years, resulting in a more than five-week strike that has halted most of the company’s aircraft production. The contract was rejected by 64% of voters, leading to a $6 billion quarterly loss for Boeing, its largest since 2020. The strike is costing the company about $1 billion a month. CEO Kelly Ortberg had prioritized reaching a deal with the machinists to get the company back on track after years of safety and quality issues. Boeing is considering slimming down and focusing on core businesses, with plans to cut 10% of its workforce. The strike began on Sept. 13 after the rejection of a previous tentative agreement with proposed raises of 25%. The latest proposal included 35% raises, increased 401(k) contributions, and a $7,000 bonus, but did not offer a pension. The union is pushing to go back to the negotiating table. Boeing declined to comment on the voting results. This strike is the latest problem for Boeing, which faced issues with its Boeing 737 Max 9 earlier in the year. The extended stoppage presents challenges to the aerospace supply chain, with suppliers having to train new workers quickly. Spirit AeroSystems announced temporary furloughs and possible layoffs if the strike continues.
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