Oct 24, V7N- Boeing’s factory workers have rejected a contract offer for the second time in a five-week strike, dealing a significant blow to the company’s new CEO, Kelly Ortberg. With 64% of workers voting against the proposal, which included a 35% wage increase over four years, the rejection highlights deep-rooted frustration over past negotiations and wage stagnation. This strike underscores the workers’ dissatisfaction with Boeing’s focus on share buybacks and executive bonuses while their wages have failed to keep up with inflation over the past decade.

Union leaders, representing more than 30,000 machinists who have halted production of Boeing’s 737 MAX and other key models, are pushing for a 40% wage increase and the reinstatement of the defined-benefit pension that was eliminated in 2014. The union is seeking to return to the negotiating table, and labor tensions are growing as the November 5 presidential election looms.

Boeing faces mounting financial pressure, having already announced job cuts and plans to raise $15 billion to maintain its credit rating. This labor dispute adds to the challenges for the struggling aerospace giant, which is also dealing with aircraft delivery delays and lingering quality issues. Analysts are calling this a pivotal moment for Ortberg, whose handling of the strike will define his tenure as Boeing’s CEO. Negotiations will likely intensify, with both sides seeking resolution before the strike further disrupts Boeing’s operations.

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