Boeing Factory Workers Vote on Controversial Contract Amid Strike Calls
Boeing's factory workers on the U.S. West Coast voted on a heavily criticized new contract, with many advocating for a strike. The proposed deal includes wage increases and bonuses, but some workers demand higher pay. If sanctioned, the strike could exacerbate Boeing's production delays and financial woes.
Boeing factory workers on the U.S. West Coast lined up Thursday to vote on a contentious new contract, with calls for a strike echoing among the crowd. The vote comes as Boeing grapples with ongoing production delays and a growing debt, putting additional pressure on CEO Kelly Ortberg, who recently took the helm following safety issues with the 737 MAX model.
The International Association of Machinists and Aerospace Workers (IAM) reported that about 30,000 employees are casting ballots on their first comprehensive contract in 16 years. If a two-thirds majority votes in favor, the strike could kick off at midnight, potentially disrupting the production of Boeing's 737 MAX, 767, and 777 jets.
The proposed deal offers a 25% wage increase, a $3,000 signing bonus, and a commitment to build Boeing's next commercial jet in Seattle. Despite IAM leadership endorsing the contract, many workers are demanding a 40% pay raise and an annual bonus. Workers were seen protesting outside union offices, signaling a strong inclination towards a strike, which could critically impact both Boeing and the airlines awaiting new planes.
The uncertainty of strike duration looms, with analysts forecasting significant financial losses for Boeing if prolonged. Past strikes have shown substantial impacts, with the 2008 strike halting operations for 52 days and costing millions daily.
CEO Kelly Ortberg appealed to workers to accept the deal, stressing that a strike would undermine recovery efforts and damage relationships with customers. With Boeing's financial health precariously balanced, the outcome of this vote is set to have far-reaching implications.
(With inputs from agencies.)
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