Boeing Machinists Vote to Strike Amid Turbulent Times

Boeing machinists have voted overwhelmingly to go on strike, rejecting a contract that proposed a 25% pay raise over four years. The strike poses a serious challenge for Boeing, impacting its production of airline planes and putting additional pressure on the newly-appointed CEO Kelly Ortberg.

Boeing machinists voted Thursday to go on strike, dealing another blow to the giant aircraft manufacturer whose reputation and finances have taken multiple hits in recent years. Production of its best-selling airline planes faces a shutdown.

The International Association of Machinists and Aerospace Workers revealed that 94.6% of its members rejected a proposed contract that included a 25% pay raise over four years. In a subsequent vote, 96% of the 33,000 workers decided to strike—far surpassing the two-thirds majority required.

Boeing has faced a series of setbacks this year, including an incident in January where a panel blew out, creating a large hole in one of its passenger jets. Additionally, NASA opted to leave two astronauts in space rather than return them on a troubled Boeing spacecraft.

The ongoing strike will deprive Boeing of crucial cash flow from new plane deliveries. This poses an extra challenge for newly appointed CEO Kelly Ortberg, who took over six weeks ago with the task of turning around a company that has lost over $25 billion in six years and fallen behind competitor Airbus.

Ortberg cautioned that a strike could jeopardize Boeing's recovery and further diminish confidence among its airline customer base. However, workers remained resolute in their decision.

(With inputs from agencies.)