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Boeing Workers Continue Strike Following Contract Rejection
Boeing factory workers voted decisively against a proposed contract on Wednesday, rejecting the offer by 64%. This decision prolongs a strike that began over five weeks ago and presents a significant challenge for new CEO Kelly Ortberg, who aimed to improve relations with employees.
The contract included a 35% wage increase over four years but failed to meet the union's demands, which included a 40% pay rise and the reinstatement of a defined-benefit pension. This rejection comes after 95% of workers previously voted against an initial contract, highlighting ongoing frustrations stemming from past negotiations that workers felt were unfair.
Union leaders are eager to resume negotiations, with the last significant talks occurring in 2014. The workers have expressed anger over stagnant wages that have not kept pace with inflation while Boeing spent billions on stock buybacks and executive bonuses.
Jon Holden, the union's chief negotiator, stressed the need for renewed discussions, stating, "Boeing needs to come to the table as well." The strike, which halted production of major aircraft models like the 737 MAX and 777, threatens Boeing’s position as a leading U.S. exporter, particularly as it faces a challenging political environment with the upcoming presidential election on November 5.
If the strike continues, suppliers like Spirit AeroSystems could face layoffs. Analysts warn that the prolonged labor dispute may worsen Boeing's already precarious financial situation, as the company seeks to raise $15 billion to stabilize its credit rating.
Richard Aboulafia of AeroDynamic Advisory described this moment as critical for Ortberg, stating, "They've got to get this done, and they're in a position of weakness."
