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Over 30,000 Boeing workers were poised to go on strike on Friday, bringing most of the company’s aircraft production to a halt following the rejection of a new labor contract by a large margin.

The manufacturer, which has been grappling with production challenges and striving to rebuild its reputation after safety issues, faces significant financial implications due to the strike.

Employees in the Seattle area and Oregon overwhelmingly voted against a proposed agreement between Boeing and the International Association of Machinists and Aerospace Workers. The rejection prompted a 96% vote in favor of a strike, surpassing the two-thirds majority required for a work stoppage.

IAM District 751 President Jon Holden announced the strike, citing alleged unfair labor practices, including discriminatory behavior and coercive actions by the company. He emphasized the need for Boeing to engage in genuine negotiations.

The tentative deal, which included a 25% wage increase and enhancements to healthcare and retirement benefits, fell short of worker expectations, who had sought higher raises owing to rising living costs.

The rejection of the contract poses a challenge for CEO Kelly Ortberg, who had urged employees to accept the agreement to avoid jeopardizing the company’s recovery. The proposed deal also included a commitment from Boeing to locate its next commercial aircraft production in the Seattle area, a move aimed at winning over union workers.

The strike, if prolonged, could have a substantial financial impact on Boeing, potentially affecting suppliers and supply chains. With the company already facing financial pressures and production challenges, the strike adds further uncertainty to its operations.

Overall, the rejection of the labor contract and subsequent strike present significant challenges for Boeing as it navigates ongoing production issues and strives to regain its footing in the aerospace industry.

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