Boeing biggest labor union went on strike, halting production of its best-selling jets and dealing the latest blow to the struggling aerospace giant.
Thousands of machinists who build Boeing’s 737, 777 and 767 jets walked off the job shortly after midnight Pacific time Friday, after rejecting a labor deal struck between the union’s leaders and Boeing’s executives. The contract offered 25% wage increases over four years.
Union leaders of the 33,000-member International Association of Machinists and Aerospace Workers chapter said about 94% of their members voted to reject the contract and 96% voted to go on strike. The officials said they would seek to return to the negotiating table with the company.
The strike will deal a financial blow when Boeing is bleeding cash and piling up debt following January’s Alaska Airlines accident in which a door plug blew off a 737 MAX jetliner in midair. A prolonged stoppage threatens to further strain the industry’s supply chain and exacerbate jet shortages for airlines. Boeing shares fell roughly 4% in premarket trading.
@ISIDEWITH3mos3MO
Do you think a 25% wage increase over four years is fair for the skills and risks involved in building airplanes?
@ISIDEWITH3mos3MO
How does a company's responsibility to its employees balance with its responsibility to its customers and shareholders?
