Turbulence at Boeing: Workers Reject New Contract Amid Strikes

Boeing factory workers continue their strike, rejecting a 35% pay rise contract amid dissatisfaction with current conditions and past grievances. New CEO Kelly Ortberg faces challenges addressing worker demands and the company's financial status. With union negotiations set to resume, Boeing's production and financial stability remain at risk.

In a significant development, Boeing factory workers have voted against a proposed contract that included a 35% wage increase over four years, furthering an ongoing strike that has persisted for more than five weeks. This decision represents a major setback for CEO Kelly Ortberg, who has been focusing on improving relations with the workforce.

The rejection signals deep-seated discontent among workers, stemming from feelings of betrayal during past negotiations. With more than 30,000 machinists striking, Boeing's production lines are at a standstill, impacting the output of key models like the 737 MAX. The union, displeased with the current proposal, seeks a 40% wage increase and the reinstatement of defined-benefit pensions.

Amidst calls for renewed discussions, union leaders are resolute in bargaining for better terms. Meanwhile, Boeing grapples with mounting financial pressures and workforce morale issues that could affect its standing ahead of the presidential elections. With government officials observing, both parties must urgently reconvene to navigate this critical moment.

(With inputs from agencies.)