In brief
Boeing has increased its pay proposal to 38% over four years, as the striking workers are set to vote on this latest offer following two rejected deals.
Striking employees at Boeing are preparing to cast their votes on a newly revised pay offer from the aerospace company, which includes a substantial 38% pay increase over the next four years. The International Association of Machinists and Aerospace Workers (IAM), which represents over 30,000 workers currently on strike, has voiced its support for the new offer and announced a member ballot scheduled for Monday.The strike, which began on September 13, has severely affected production and deepened challenges for Boeing. Initially, the union demanded a 40% pay hike and had rejected prior proposals of 35% and then a lesser amount. The latest offer not only features a wage increase but also provides a $12,000 bonus for workers if an agreement is reached, an increase from the previous $7,000 incentive.In a statement on social media, the IAM urged members to embrace the new proposal, asserting that “it is time for our members to lock in these gains and confidently declare victory." Boeing clearly expressed its hope that employees would thoroughly review the improved offer and participate in the upcoming vote on November 4.The aviation giant indicated that the new deal would elevate the average annual salary to $119,309 over the next four years. Additionally, the offer includes adjustments to workers’ retirement plans, aiming to enhance satisfaction among its workforce.The announcement of the revised proposal saw Boeing's shares rise by 2.7% during extended trading hours in New York, as the company eagerly attempts to resolve the ongoing strike and stabilize its finances. Boeing's commercial aircraft division reported a staggering operating loss of $4 billion for the third quarter, prompting strategic actions to secure funds.As part of its financial restructuring, Boeing is expected to initiate layoffs impacting around 17,000 workers, starting with redundancy notices in mid-November. This chaotic period at Boeing traces back to January when a significant mid-air incident damaged one of its aircraft, further straining the company's reputation, alongside challenges faced by its space division after issues with the Starliner vessel.
