Boeing's 33,000 production workers voted overwhelmingly to strike yesterday, with over 90% of members rejecting the company's proposal of a 25% wage hike over four years. The work stoppage is a blow to new CEO Kelly Ortberg, brought on last month to restore faith in the company amid a series of safety lapses.
While Boeing's proposed pay hike fell below the 40% production workers called for, the union had recommended workers accept the deal (see previous write-up). In announcing vote results, however, the union characterized the work stoppage as an unfair labor strike, citing alleged safety violations on the production floor.
The strike, which began overnight, is expected to be costly. Boeing is the US' single largest exporter by dollar value, generating close to $80B in revenue each year in commercial and military aircraft, weapons, and related products and services. When production workers last went on strike in 2008, the 52-day work stoppage cost the company an estimated $100M per day in deferred revenue.
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