WASHINGTON (Agencies): Striking Boeing workers have rejected the company’s latest offer, which included a 35% pay increase spread over four years. The International Association of Machinists (IAM) union announced that 64% of its members voted against the proposed deal, continuing a strike that began on September 13.
The strike, involving more than 30,000 workers, escalated after the rejection of an initial offer. This labor dispute adds to Boeing’s challenges, as the company grapples with mounting losses and operational difficulties.
Boeing’s CEO, Kelly Ortberg, who assumed the role in August, has described the situation as a “crossroads” for the company. Speaking to investors, Ortberg revealed that Boeing is facing significant financial pressure, with losses surging to approximately $6 billion. He warned that restarting production after the strike ends would be a complex process, requiring careful planning and execution.
Ortberg expressed disappointment over the vote but remained hopeful that the company could stabilize, despite its recent setbacks. These include a mid-air incident involving a Boeing aircraft and reputational damage from its Starliner space program.
While Boeing has a large backlog of 5,400 aircraft orders, the strike and ongoing production delays pose serious challenges to meeting these demands. Additionally, the company has announced plans to cut 10% of its workforce, with thousands of staff already furloughed due to the strike.
Ortberg emphasized the need for a “fundamental culture change” within Boeing, acknowledging that the firm must address its deep-rooted operational and safety issues to restore its standing in the aviation and space sectors.