Over 30,000 Boeing workers were set to strike after rejecting a new labor contract, costing the company in the midst of production struggles and reputation damage. The workers voted overwhelmingly against the tentative agreement, with 96% in favor of a strike. The union cited unfair labor practices as the reason for the strike, alleging discriminatory conduct and coercive questioning by Boeing. The proposed contract included 25% wage increases and other benefits, but workers had sought larger raises to cover the cost of living. The strike is a blow to new CEO Kelly Ortberg, who had urged workers to accept the deal to avoid jeopardizing the company’s recovery.
If the strike lasts, it could have significant financial impacts on Boeing, with estimates suggesting a $1.5 billion hit if it lasts 30 days. The company has already faced financial difficulties this year, with production issues and industry-wide challenges adding to its woes. Boeing’s reputation has also suffered due to safety crises, including a recent incident involving a Boeing 737 Max 9. If the strike continues, it could destabilize Boeing’s suppliers and supply chains, exacerbating the company’s financial problems.
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