Boeing Workers Vote on New Contract Proposal Amid Ongoing Strike
Tens of thousands of Boeing machinists are poised to vote on a new contract proposal aimed at ending a weeks-long strike against the aerospace giant. The strike, which has resulted in significant financial losses for Boeing, follows the rejection of a previous offer last month.
In the lead-up to the vote, Boeing announced a staggering $6.1 billion loss for the latest quarter, largely attributed to the ongoing strike. Boeing CEO Kelly Ortberg emphasized the urgency of resolving the strike in a letter to investors, stating that addressing the work stoppage is essential for the company’s future.
The new contract proposal includes a cumulative pay raise of 35% over four years, an increase from the 25% raise in the previous offer, though it still falls short of the workers’ demand for a 40% increase. Additionally, the proposal raises Boeing’s contributions to a 401(k) plan but does not reinstate the company’s defined pension plan, a key demand from workers. Each worker would also receive a $7,000 ratification bonus and a performance bonus as part of the deal.
The International Association of Machinists and Aerospace Workers (IAM), representing 33,000 Boeing employees, indicated that the new proposal deserves careful consideration. As financial pressures mount due to the strike, many union members are receiving $250 per week from a strike fund, a significant decrease compared to their usual earnings.
The strike has already resulted in significant costs for Boeing, with estimates suggesting that the company may incur losses of $5.5 billion if the work stoppage continues for 50 days. As of now, the strike has lasted 40 days, prompting Boeing to announce furloughs and pay cuts for some employees and plans to cut 17,000 jobs, about 10% of its workforce.
Historically, strikes involving Boeing workers in the Pacific Northwest have averaged around 60 days. The outcome of the current vote remains uncertain, with analysts and observers closely watching whether the workers feel empowered to negotiate further or whether Boeing will consider the latest offer sufficient to end the strike.
If the majority of workers approve the proposal, the strike will come to an end, allowing Boeing to resume operations and mitigate further financial damag
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