
#Boeing #Reaches #Tentative #Deal #Machinists #Union #Strike
Key takeaways
- Boeing shares rose in premarket trading Friday after it reached a tentative agreement with a machinists union on a new contract, potentially ending a crippling seven-week strike.
- The International Association of Machinists (IAM) is asking its members to approve Boeing’s improved offer in a vote on Monday.
- The new offer includes a general wage increase of 38% over four years, which is higher than the previous offer of 35%. This “doubles to 43.65% for the duration of the agreement,” the union said.
Shares of Boeing ( BA ) rose in premarket trading Friday after it reached a tentative agreement with a machinists union on a new contract, potentially ending a crippling seven-week strike.
The International Association of Machinists (IAM) is asking its members to approve Boeing’s improved offer in a vote on Monday. Its members have been on strike since September 13.
“In every negotiation and strike, there comes a point where we have extracted everything we can in bargaining and withholding our work,” IAM District 751 said Thursday. “We are at that point now and risk making a lower or lower offer in the future.”
Boeing’s new offer includes a 38% pay increase over four years
The new offer includes a general wage increase of 38% over four years, which is higher than the previous offer of 35%. The union said that this “doubles to 43.65% over the life of the agreement.”
The new offer will also give workers the option of a one-time $12,000 certification bonus; 401(k) contributions; Or “a combination of both,” the union said.
“We encourage all of our employees to learn more about the enhanced offering and vote on Monday, November 4,” Boeing said.
Boeing has taken steps to stop the cash drain from the strike
The strike was painful for Boeing, which is raising billions of dollars to stop the drain on funds. The planemaker plans to lay off about 10% of its workforce, or 17,000 workers, “over the coming months,” CEO Kelly Ortberg, who took the position in August, said in a memo to employees earlier this month. “The launch of the first 777X aircraft has been postponed.
Boeing shares, which rose 2% in premarket trading, had lost more than 40% of their value this year as of Thursday’s close.
#Boeing #Reaches #Tentative #Deal #Machinists #Union #Strike