Boeing workers reject offer of 25% pay increase, go on strike

Following the failure of discussions between the International Association of Machinists and Aerospace Workers and Boeing to establish an agreement that would enhance workers' compensation and benefits, tens of thousands of Boeing assembly machinists in Washington decided to go on strike and stop production.

According toThe Associated Press, 94.6% of voting workers rejected Boeing's contract proposal, which included a 25% wage increase over four years. In addition, 96% of members voted in favor of a strike, surpassing the two-thirds majority required for such an action.

The company's stock value has dropped by more than 60% in the last five years, and Boeing has not been profitable since 2018, reporting losses exceeding $33 billion, according to CNN.

Boeing's public image has also suffered following accusations of poor safety standards. Earlier this year, the company pleaded guilty to federal fraud charges related to two fatal plane crashes in 2018 and 2019, which killed 346 people.

The company's last strike in 2008 lasted eight weeks and resulted in losses of approximately $100 million per day. Sheila Kahyaoglu, a Jefferies aerospace analyst, estimates that the current strike could cost Boeing around $3 billion, perThe Associated Press.

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