Boeing Co (NYSE:BA) machinists rejected a new labor deal with 64% voting against the proposal, their union announced Wednesday, extending a strike that has halted most of the company's Seattle-area production for over five weeks.
What Happened: The deal offered 35% wage increases over four years, increased 401(k) contributions, and a $7,000 bonus. However, workers were dissatisfied with the absence of a pension plan and sought higher pay to offset rising living costs, reported CNBC.
The strike is Boeing's first since 2008 and adds to the company's challenges, including a $6 billion quarterly loss and continued cash burn. CEO Kelly Ortberg emphasized resolving the labor dispute as a priority.
Price Action: Boeing stock closed at $157.06 on Wednesday, down 1.76% for the day. In after-hours trading, the stock saw a modest recovery, rising 0.55%. Year to date, Boeing's stock has declined 37.62%, according to data from Benzinga Pro.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
