Around 33,000 Boeing union members began striking on Friday after overwhelmingly rejecting a four-year contract with the aircraft manufacturer. This is the first time Boeing members have gone on strike in 16 years. The strike will stop commercial plane production and lead to further problems for an already troubled manufacturing giant.
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Boeing Workers’ Strike: Key Details and Implications
Union Members Reject 25% Pay Hike
The company has around 150,000 US employees, and 33,000 of them have been on strike since midnight. The Boeing workers on strike represent the International Association of Machinists and Aerospace expressed their dissatisfaction over a pay hike. After much negotiations, the aircraft giant proposed a 25% pay hike with increased job security for union members.
Overwhelming Rejection of the Proposal
However, the deal was rejected by a landslide, as 94.6% of the union members voted against the proposal. Additionally, Boeing members on strike hit the highest rate, as 96% of the union employees are participating in it. The development will slow down work in the manufacturing plant, leading to delays and losses for the troubled airspace firm.
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Initial Demands and Union’s Stance
The workers had initially asked for a 40% pay hike and other improvements in the salary packages. “This is about fighting for our future. We strike at midnight,” said Jon Holden, President of IAM, while on a strike with Boeing members. “We will be back at the table whenever we can get there to drive forward on the issues our members say are important,” he said to the Seattle Times.
What Next For Boeing as Union Workers Begin To Strike
The buck stops at CEO Kelly Ortberg, hired last month to change things for the aircraft company. The firm is plagued with de-functional technologies, which led to several plane crashes in the previous few years. Ortberg received his first embarrassment as he urged Boeing members to vote for the proposal before the voting lines opened.
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To his surprise, 94.6% of the union members rejected the 25% hike, demanding a 40% raise. The following steps would involve Ortberg handling the situation with the Boeing union members on strike.