MORNING NEWSBREAK | Boeing’s largest union rejected a tentative labor contract by a wide margin on Wednesday, extending a strike only hours after the company reported a $6.1 billion loss.
The contract, the second that Seattle-area unionized workers have voted down, was opposed by 64% of voters, according to the International Association of Machinists and Aerospace Workers. The union represents about 33,000 workers, but it did not disclose how many voted on Wednesday.
Boeing is one of the largest employers in South Carolina, but the company’s employees at the North Charleston facility are non-union, making it unlikely that production of the Boeing 787 Dreamliner will be impacted.
Under the rejected contract, workers would have received cumulative raises of nearly 40% over four years, a significant increase over a previously rejected offer and approaching what the union initially sought. The offer included a $7,000 one-time bonus and additional contributions to retirement plans. It also would have preserved an incentive bonus program that the initial rejected offer would have replaced.
Boeing declined to comment on the vote, according to a report by The New York Times.
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