More than 30,000 Boeing workers were set to strike after rejecting a new labor contract, with 94.6% voting against the agreement. The workers voted 96% in favor of a strike, leading to a halt in production of most of the company’s aircraft. The strike was characterized as an “unfair labor practice strike” due to alleged discriminatory conduct by the company.
The tentative agreement included a 25% wage increase and improvements to health-care and retirement benefits, but workers were seeking raises of about 40%. The strike is a blow to CEO Kelly Ortberg, who had urged workers not to strike, fearing it would jeopardize the company’s recovery.
If the strike lasts 30 days, it could result in a $1.5 billion hit for Boeing and potentially destabilize suppliers and supply chains. The financial impact will depend on the strike’s duration. The tentative agreement, if passed, would have had an annual impact of $900 million.
Boeing has faced production issues, supply shortages, and federal scrutiny following safety crises. The company has burned through $8 billion so far this year and faces mounting debt. The strike is a setback for Boeing as it struggles to ramp up production and regain its reputation after safety incidents with its Boeing 737 Max 9.
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