Boeing machinists have voted against a new labor deal that included a 35% wage increase over four years, leading to an extended strike that has halted most of the company’s aircraft production in the Seattle area. The rejection of the contract by 64% of voters is a setback for the company, which reported a $6 billion quarterly loss and warned of continued cash burn through 2025. CEO Kelly Ortberg had prioritized reaching a deal with machinists to move the company forward after years of safety and quality issues. The strike is costing Boeing about $1 billion a month, and Ortberg’s vision for the company may include downsizing to focus on core businesses. The latest proposal from Boeing included 35% raises, increased 401(k) contributions, and a $7,000 bonus, but the union felt it did not meet their demands. The strike, the first since 2008, began after machinists rejected a previous agreement that proposed a 25% raise. The labor dispute adds to a series of challenges for Boeing, including recent safety issues with its planes. The extended strike also affects the aerospace supply chain, with companies like Spirit AeroSystems facing potential layoffs or furloughs due to the ongoing strike. The union plans to continue pushing for negotiations with Boeing.
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