People hold signs during an International Association of Machinists and Aerospace Workers (IAM) strike rally at Union Hall on October 15, 2024 in Seattle, Washington.
Jason Redmond | AFP | Getty Images
boeing company 64% of mechanics voted against new labor agreement Their union said on Wednesday it included a 35% pay rise over four years, extended by more than five weeks. strike Most of the company’s aircraft production, centered in the Seattle area, has been halted.
The rejection is another major setback for the company, which earlier on Wednesday warned it would continue to burn cash through 2025 and posted a quarterly loss of $6 billion, its largest loss since 2020. Kelly Ortberg said reaching agreements with mechanics is the company’s top priority.
Boeing’s more than 32,000 machinists in the Puget Sound region, Oregon and elsewhere voted overwhelmingly to reject an earlier tentative deal calling for a 25% pay increase and went on strike on September 13. The International Association of Machinists and Aerospace Workers originally sought a 40% wage increase. This is the first strike by mechanics since 2008.
The latest proposal, announced Saturday, includes a 35% pay raise over four years, increased 401(k) contributions, a $7,000 bonus and other improvements.
Workers are demanding higher wages as the cost of living soars in the Puget Sound region. Some mechanics are upset about losing the pension plan from the last contract signed in 2014, but the latest contract also does not provide a pension.
Boeing agreed in a new contract to build its next plane in the Pacific Northwest, also becoming a sticking point for union workers after the company moved all of its 787 Dreamliner production to a non-union factory in South Carolina.
The labor dispute is the latest in a long list of problems for Boeing.
The strike began as Boeing was working to increase production of its 737 and other aircraft.
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