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Boeing, the US aircraft manufacturer, announced today that it had failed to prevent a planned strike by its largest union, despite offering a 25% wage increase over four years.
Boeing machinists voted overwhelmingly in favor of the strike, with 96 percent support, Bloomberg News reported today.
The International Association of Machinists, which represents about 33,000 workers, said its members rejected a contract promising a 25 percent wage increase over four years, as well as improvements to health care and retirement costs. The deal was rejected by a 94.6 percent vote. The union had originally sought a wage increase of about 40 percent.
Boeing also agreed to make new models in union factories, a key union demand, following the establishment of a non-union plant in South Carolina more than a decade ago to produce the 787 Dreamliner.
Boeing is facing financial losses following a series of safety-related incidents. The Federal Aviation Administration is withholding approval for expanded production of the 737 until the company can improve quality control.
It is noteworthy that last January, one of the door panels of a 737-9 exploded during takeoff, apparently due to a missing component.