Boeing Workers Strike Over Rejected Contract: A Blow to the Aerospace Giant

Thousands of Boeing aircraft assembly workers started a strike after rejecting a tentative contract. This action involves over 33,000 machinists, shutting down significant airplane production. Despite a proposed 25% pay increase over four years, workers demanded more substantial raises and reinstating traditional pensions. Boeing's struggles continue under CEO Kelly Ortberg.

Early Friday, thousands of Boeing aircraft assembly workers initiated a strike at factories near Seattle and elsewhere after overwhelmingly rejecting a tentative contract proposing a 25% wage increase over four years.

With a 94.6% rejection and 96% approval of the strike, the labor action, involving 33,000 machinists mainly in Washington state, is expected to halt production of Boeing's top-selling airline planes. Although commercial flights are unaffected, this strike poses another setback for Boeing's already troubled reputation and finances.

Boeing CEO Kelly Ortberg, who recently took the helm, faces the challenge of addressing workers' demands for a 40% pay rise over three years and the return of traditional pensions, amid the company's ongoing financial struggles and competition with European rival Airbus.

(With inputs from agencies.)