Boeing workers currently on strike are preparing to vote on a new proposal from the aviation company, which includes a substantial pay increase of 38% over the next four years. The International Association of Machinists and Aerospace Workers (IAM) union, representing over 30,000 striking employees, has backed the offer and plans to conduct a ballot on Monday.
The strike, which began on 13 September, has significantly slowed production and exacerbated the company’s ongoing challenges. Initially, the union had sought a 40% pay rise and had rejected two previous offers, the latest being a 35% increase.
In addition to the proposed pay rise, the latest offer includes a bonus of $12,000 (£9,304) for workers should a deal be finalised, an increase from the previous $7,000.
“It is time for our members to lock in these gains and confidently declare victory,” stated an IAM social media post. “We believe asking members to stay on strike longer wouldn’t be right as we have achieved so much success.”
Boeing indicated that, if accepted, the offer would raise the average annual salary to $119,309 over the next four years. “We encourage all of our employees to learn more about the improved offer and vote on Monday, November 4,” the company said in a statement. The proposal also includes modifications to workers’ retirement plans.
Following the announcement of the proposed deal, Boeing shares rose by 2.7% in extended trading in New York. The company is keen to resolve the strike and strengthen its financial position, as its commercial aircraft division reported operating losses of $4 billion for the quarter ending September.
Earlier this week, Boeing initiated a share sale aimed at raising over $20 billion, following warnings that a prolonged strike could result in downgrades to its credit rating, making borrowing more costly. Additionally, the firm is moving forward with plans to lay off approximately 17,000 employees, with the first redundancy notices anticipated in mid-November.
This latest crisis at Boeing began in January when a piece of one of its passenger planes suffered a dramatic mid-air blowout. The company’s space division also faced reputational damage when its Starliner vessel had to return to Earth without carrying astronauts.
Frances Ibiefo
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