Boeing employees reject 30% pay raise offer
Striking Boeing mechanics have rejected a deal with management. The workers were not satisfied with the proposed terms, reports RIA Novosti.
Employees of one of the largest aircraft manufacturers demanded a 40 percent pay raise over the next three years. The company, in turn, promised to raise salaries by 30 percent over four years, but double current bonuses. The parties failed to reach an agreement, and the company’s management refused to discuss it further.
The conflict between employees and management flared up just weeks after Kelly Ortberg took over as Boeing CEO. He must resolve numerous issues, including the incident with the door of a nearly new 737 MAX that fell off mid-flight in January 2024. The airliner was manufactured at the very plant where the strike began.
The strike has already slowed production of the planes, sources say, and will cost Boeing billions of dollars. The strike has forced the company to furlough tens of thousands of workers and halt production of its best-selling 737 jet, as well as the 777 and 767 wide-body jets.
According to experts, the international rating agency Moody’s may lower Boeing’s credit rating to “junk”. Experts fear that a mass strike by the company’s workers could disrupt the recovery of business in the civil aircraft segment and negatively affect its cash flow.
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