In brief
Striking Boeing employees are set to vote that could end a seven-week walkout, as the company adjusts its offer to include significant pay increases and bonuses.
Boeing workers have a new pay offer on the table as they approach a vote that could finally put an end to their seven-week strike. The aviation giant has proposed a 38% raise over the next four years, which has garnered the support of the International Association of Machinists and Aerospace Workers (IAM), representing over 30,000 striking employees. The union will hold a crucial ballot on the new proposal, which includes a bonus increase from $7,000 to $12,000 if a deal is agreed upon.The strike, which began on September 13, has significantly slowed down Boeing's production, exacerbating problems for the company. Previously, workers rejected two offers, including one providing a 35% raise. After significant pressure, the IAM is encouraging members to secure the new deal and declare it a success, believing that further delays in negotiations would not be beneficial.If accepted, this latest offer will boost the average annual salary of Boeing workers to $119,309 and involve changes to retirement plans. The announcement of the improved offer positively impacted Boeing's stock, which rose 2.7% in New York trading. However, challenges remain as Boeing reported operating losses of $4 billion in its commercial aircraft sector last quarter and has plans to lay off approximately 17,000 workers. The company faces pressure from its ongoing struggles and a potential downgrading of its credit rating due to the strike.
