Boeing workers reject agreement and will continue strike

Boeing workers have overwhelmingly rejected the company’s proposed wage increase and will continue their strike, which will now last six weeks. Last week, unions and Boeing reached an agreement that, among other improvements, included a 35% wage increase, but it had to be ratified by workers.

64% of workers called to vote (about 33,000 members) voted against the agreement. The news coincides with the release of results from the group, which reported a loss of almost $6.2 billion in the latest quarter, about 5.7 billion euros, almost four times more than a year ago. The fall in production – the strike affected the 737 Max, 767 and 777 lines – in aircraft deliveries and the strike more than tripled losses in nine months, to $8 billion or 7,400 million euros. These are the worst figures in four years.

More challenges for Kelly Ortberg

The first strike at the enterprise in 16 years will continue. Unions are demanding a 40% increase and reinstatement of the pension system, which was abolished in 2008, but this has not been offered. Negotiations are expected to resume soon.

The agreement could help turn things around for a company that remains struggling and is testing various financing and restructuring formulas under new CEO Kelly Ortberg, just two months into his tenure.

At the same time, it assumes a workforce reduction of 17,000 people, or 10% of the workforce. The company has been in crisis since two 737 Max planes crashed in Ethiopia and Indonesia five years ago, killing hundreds and prompting a redesign. Most recently, the company faced new problems after part of an aircraft of the same series broke off in flight.