Strike: Boeing employees walked out of the company after rejecting a 25% pay rise. The measure halted production of the 737 Max aircraft at its Seattle plants
Boeing faces further turmoil after workers walked off the job in their first strike in 16 years.
Staff at the troubled aircraft manufacturer have walked off the job after rejecting a 25 per cent pay rise. The move halted production of the 737 Max aircraft at its Seattle plants in the US. It was the first strike since 2008 and came weeks after Kelly
Ortberg was appointed chief executive to restore confidence in the company after a door panel on a new 737 Max jet exploded in mid-air in January.
Some 30,000 members of the International Association of Machinists and Aerospace Workers, which produces Boeing’s 737 Max and other aircraft, took part in the vote: 94.6 percent rejected the new contract and 96 percent supported the strike.
A prolonged strike could severely affect Boeing’s finances, which are already saddled with £45bn of debt.
Analysts at investment bank TD Cowen believe a 50-day strike could cost the company up to £2.7bn in cash flow.