Boeing machinists have voted against a new labor deal that included a 35% wage increase over four years, prolonging a more than five-week strike. The rejection of the contract by 64% of voters is a setback for Boeing, which reported a $6 billion quarterly loss and warned of continued cash burn through 2025. The strike is costing the company about $1 billion a month. New CEO Kelly Ortberg has emphasized the need to reach a deal with the machinists to move the company forward. Ortberg has outlined plans to slim down Boeing’s operations and focus on core businesses, including cutting 10% of the global workforce. The latest proposal included 35% raises over four years, increased 401(k) contributions, and a $7,000 bonus. The machinists, however, were pushing for higher pay amidst rising living costs in the Puget Sound area. The strike is the machinists’ first since 2008. The union plans to go back to the negotiating table after rejecting the latest proposal. Boeing has agreed to build its next aircraft in the Pacific Northwest as part of the new contract. The strike comes as Boeing is facing ongoing issues, including regulator scrutiny after a door plug blew out midair on a Boeing 737 Max 9 plane earlier in the year. The strike is also impacting the aerospace supply chain, with suppliers like Spirit AeroSystems announcing temporary furloughs and potential layoffs if the strike continues.
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