Boeing has put forth a new compensation proposal, which includes a 38% salary hike and a one-time bonus, as workers prepare to vote on the offer amidst a continuing seven-week walkout.
Boeing Proposes Increased Pay Package Amid Ongoing Strike Tensions
Boeing Proposes Increased Pay Package Amid Ongoing Strike Tensions
Boeing seeks to resolve its ongoing strike by offering workers a revised compensation deal including a significant pay increase.
The article text:
Boeing has raised its pay proposal in an effort to address a seven-week strike by workers, with an exciting new offer on the table. Striking employees will vote on this fresh offer that proposes a substantial 38% pay increase over the next four years. The International Association of Machinists and Aerospace Workers (IAM) union, representing over 30,000 workers actively participating in the strike, has endorsed this new offer and plans to hold a membership ballot this coming Monday.
The strike, which began on September 13, has led to a notable slowdown in production and has intensified an existing crisis facing the company. Earlier negotiations had seen workers reject two previous offers, which included a 35% increase and a demand for a 40% raise. In addition to the pay increase, the updated proposal includes a bonus of $12,000 for workers, up from a previously suggested $7,000, if a deal is finalized.
An IAM social media post underscored the urgency of accepting the new terms, stating, "It is time for our members to lock in these gains and confidently declare victory,” adding that prolonging the strike would not be justified given the progress made. Boeing has noted that under this offer, the average employee's annual salary will rise to approximately $119,309 over the next four years.
In an official statement, Boeing encouraged employees to thoroughly review the new proposal and participate in the upcoming vote on Monday, November 4. Furthermore, this revised offer entails adjustments to workers' retirement plans, signaling a comprehensive reconsideration of employee benefits.
As news of the offer broke, Boeing shares saw an increase of 2.7% in extended trading on the New York stock market, highlighting investor optimism regarding a possible resolution. The company's leadership is keen to resolve the strike swiftly to stabilize finances, as last week, Boeing's commercial aircraft segment reported a staggering $4 billion operating loss for the third quarter.
In addressing potential long-term impacts, the firm also initiated a significant share sale aimed at raising over $20 billion, as risks associated with a protracted strike could lead to unfavorable downgrades in Boeing's credit rating, which would complicate borrowing efforts. The company is also moving forward with plans to lay off approximately 17,000 employees, with redundancy notices expected to begin around mid-November.
This ongoing turmoil for Boeing traces back to earlier issues arising in January, including a mid-air failure of one of its passenger jets. Meanwhile, the reputation of Boeing’s space division has also faced setbacks after the Starliner spacecraft had to return to Earth without a successful crewed mission.
Boeing has raised its pay proposal in an effort to address a seven-week strike by workers, with an exciting new offer on the table. Striking employees will vote on this fresh offer that proposes a substantial 38% pay increase over the next four years. The International Association of Machinists and Aerospace Workers (IAM) union, representing over 30,000 workers actively participating in the strike, has endorsed this new offer and plans to hold a membership ballot this coming Monday.
The strike, which began on September 13, has led to a notable slowdown in production and has intensified an existing crisis facing the company. Earlier negotiations had seen workers reject two previous offers, which included a 35% increase and a demand for a 40% raise. In addition to the pay increase, the updated proposal includes a bonus of $12,000 for workers, up from a previously suggested $7,000, if a deal is finalized.
An IAM social media post underscored the urgency of accepting the new terms, stating, "It is time for our members to lock in these gains and confidently declare victory,” adding that prolonging the strike would not be justified given the progress made. Boeing has noted that under this offer, the average employee's annual salary will rise to approximately $119,309 over the next four years.
In an official statement, Boeing encouraged employees to thoroughly review the new proposal and participate in the upcoming vote on Monday, November 4. Furthermore, this revised offer entails adjustments to workers' retirement plans, signaling a comprehensive reconsideration of employee benefits.
As news of the offer broke, Boeing shares saw an increase of 2.7% in extended trading on the New York stock market, highlighting investor optimism regarding a possible resolution. The company's leadership is keen to resolve the strike swiftly to stabilize finances, as last week, Boeing's commercial aircraft segment reported a staggering $4 billion operating loss for the third quarter.
In addressing potential long-term impacts, the firm also initiated a significant share sale aimed at raising over $20 billion, as risks associated with a protracted strike could lead to unfavorable downgrades in Boeing's credit rating, which would complicate borrowing efforts. The company is also moving forward with plans to lay off approximately 17,000 employees, with redundancy notices expected to begin around mid-November.
This ongoing turmoil for Boeing traces back to earlier issues arising in January, including a mid-air failure of one of its passenger jets. Meanwhile, the reputation of Boeing’s space division has also faced setbacks after the Starliner spacecraft had to return to Earth without a successful crewed mission.
