NEW YORK: US aircraft manufacturer Boeing announced on Thursday that it had failed to prevent a planned strike by its largest union, despite offering a 25 per cent pay increase over four years, reported German Press Agency (dpa).
Machinists at Boeing voted overwhelmingly in favour of a strike, with 96 per cent in support.
The International Association of Machinists (IAM), which represents around 33,000 employees, said its members rejected a contract promising a 25 per cent pay increase over four years, as well as improvements in health costs and retirement. The contract was rejected by a majority of 94.6 per cent in the vote.
The union had initially sought a pay rise of about 40 per cent.
Boeing had also agreed to manufacture new models in the unionised plants, a key demand of the union following the establishment of a non-union plant in South Carolina over 10 years ago to produce the 787 Dreamliner.
Boeing is facing financial losses following a series of incidents related to the safety of its planes. The Federal Aviation Administration (FAA) is withholding approval for the expansion of 737 production until the company can improve its quality control.
In January a door panel of a 737-9 blew out during an ascent, apparently due to a missing component.
– Bernama, dpa
