Boeing raises pay offer in bid to end seven-week strike

Boeing is set to present a new pay offer to striking workers, which includes a substantial 38% salary increase over the next four years. The International Association of Machinists and Aerospace Workers (IAM), representing over 30,000 employees on strike since September 13, has endorsed this proposal and plans to conduct a vote among its members on November 4.

The ongoing strike has significantly impacted Boeing’s production, exacerbating the company’s existing challenges. Prior to this latest proposal, the union had been advocating for a 40% wage increase and had previously rejected two offers, including a last proposal of a 35% raise. In addition to the proposed salary increase, the new offer features a bonus of $12,000 for workers if a deal is reached, an increase from the previous $7,000 bonus.

In a statement on social media, the IAM expressed optimism about the new offer, encouraging members to consider the progress made. “It is time for our members to lock in these gains and confidently declare victory. We believe asking members to stay on strike longer wouldn’t be right as we have achieved so much success,” the union stated.

Boeing has indicated that this new deal would raise the average annual pay for its workers to $119,309 over the coming four years. The company is actively encouraging its employees to review the improved offer and participate in the upcoming vote.

The proposal also includes revisions to the workers’ retirement plans, signaling Boeing’s efforts to enhance employee benefits alongside wage increases. Following the announcement of the new offer, Boeing’s stock rose by 2.7% in extended trading in New York, reflecting some investor optimism about the potential resolution of the strike.

This strike comes amid broader financial challenges for Boeing, particularly within its commercial aircraft division, which reported a staggering $4 billion operating loss for the third quarter ending September. The company is concurrently working on a significant share sale aimed at raising over $20 billion to bolster its financial position. Warnings have emerged that a prolonged strike could lead to downgrades in Boeing’s credit rating, which would increase borrowing costs and further strain its financial health.

In addition to these financial woes, Boeing is also moving forward with plans to lay off approximately 17,000 workers, with initial redundancy notices expected to be issued by mid-November. The current strike and layoffs are part of a series of challenges that have beset the company, particularly following a notable incident in January when a passenger aircraft suffered a mid-air blowout.

Boeing’s space division has also faced setbacks, notably when its Starliner spacecraft was forced to return to Earth without carrying any astronauts, further damaging the company’s reputation in that sector.

As the strike continues, the outcome of the IAM’s vote on the new pay proposal will be crucial not only for the workers but also for Boeing’s ability to stabilize its operations and financial health. With the company’s future hanging in the balance, the decision made by the striking workers could mark a significant turning point for both the employees and the aviation giant itself.