Boeing machinists rejected a new labor deal that included 35% wage increases over four years, extending a strike that has halted aircraft production. The rejection comes as Boeing reported a $6 billion quarterly loss and warned of continued cash burn through 2025. The company’s new CEO, Kelly Ortberg, emphasized the importance of reaching a deal with the machinists to address safety and quality crises. The strike, which began on Sept. 13, is the machinists’ first since 2008. The latest proposal also included increased 401(k) contributions and a $7,000 bonus, but did not offer a pension. Workers were seeking higher pay due to high living costs in the area. Boeing agreed to build its next aircraft in the Pacific Northwest as part of the new contract. The strike disrupted production as Boeing was working to ramp up production of the 737 and other aircraft. The labor strife is the latest in a series of challenges for the company, including safety concerns with the 737 Max, and moving production of the 787 Dreamliner to a non-union factory in South Carolina.
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Boeing workers reject proposed contract, prolonging strike
