Boeing workers to vote on new negotiated wage deal
20 Oct 2024
US aircraft maker Boeing Co and the union representing its striking machinists have reached a tentative deal to end a month-long strike that halted all manufacturing activity at Boeing’s West Coast facilities.
Workers affiliated to the International Association of Machinists and Aerospace Workers are expected to vote to ratify the negotiated proposal that could end the month-long strike.
In a social media post on Saturday, the union said the "negotiated proposal" was arrived at with the help of acting US secretary of labour Julie Su, who also recommended the proposal for consideration by the striking workers.
The new proposal offers a 35 per cent pay hike over four years, a $7,000 ratification bonus, enhanced contributions to workers' retirement plans, including a one-time payment of $5,000 and up to 12 per cent in employer contributions.
Boeing had, last month, offered a 25 per cent salary increase besides a $3,000 signing bonus to the striking workers, which 95 per cent of the 33,000 unionised West Coast workers had rejected outright.
The workers’ strike that began on 13 September, halted production of the 737 MAX and its 767 and 777 widebody versions, its top selling aircraft, further complicating the financial burden of the company.
Boeing last Friday said it would have to cut 17,000 jobs, or 10 per cent of its workforce, after taking a $5 billion charge that included compensation to airlines for its faulty aircraft window.
Simultaneously, Boeing is planning a $25 billion debt and equity issue over the next three years, besides a $10-billion credit agreement.
Boeing’s troubles have been complicated by the Federal Aviation Administration’s order barring it from increasing production, following the safety enquiry instituted after a door panel flew off a new 737 MAX 9 jet in midair in January.
Boeing pleaded guilty to a criminal fraud conspiracy charge and agreed to pay at least $243.6 million.
Boeing said it expected employees to vote for the negotiated proposal - the first after the 2008 contract, arrived at after two months of strike that caused a $6.4 billion loss to the planemaker.
The company is estimated to have lost at least $571 million in the first week of the current strike and the total loss could add up to several billions.
A settlement of the current strike will not, however, end Boeing’s woes, although it would come as some relief.
Boeing is also reported to be weighing plans to sell some of its non-core assets to revive its sinking finances.
The Wall Street Journal reported on Sunday that Boeing last week reached an agreement to offload a small defense unit that makes surveillance equipment for the US military.