18 C
Ottawa
Friday, November 1, 2024

Boeing, union reach sweetened contract offer in bid to end strike, vote scheduled for Monday

Date:

Boeing workers from the International Association of Machinists and Aerospace Workers District 751 gather on a picket line near the entrance to a Boeing production facility on the day of a vote on a new contract proposal during an ongoing strike in Renton, Washington, U.S. October 23, 2024. 

Thank you for reading this post, don't forget to subscribe!

David Ryder | Reuters

Boeing and its machinists’ union have agreed on a new negotiated offer to raise worker pay and potentially end a crippling strike that began almost seven weeks ago with a vote on the new proposal set for Monday.

The union urged workers to approve the contract.

“In every negotiation and strike, there is a point where we have extracted everything that we can in bargaining and by withholding our labor,” the International Association of Machinists and Aerospace Workers District 751 said Thursday. “We are at that point now and risk a regressive or lesser offer in the future.”

The union said that asking its members to stay on strike longer “Wouldn’t be right as we have achieved so much success.”

Boeing’s more than 32,000 machinists, mostly based in the Seattle area, walked off the job on Sept. 13 after turning down a tentative agreement. They rejected another proposal earlier this month, extending the strike.

The new proposal includes 38% general wage increases over four years, up from a previous offer for 35%, bringing the compounding pay increases to close to 44%, the union said Thursday. It also gives workers the option of a $12,000 one-time ratification bonus or to choose a previous offer for a $7,000 ratification bonus and a $5,000 401(k) contribution.

Boeing said Thursday at the end of the contract, average machinist pay will average $119,309.

“We encourage all of our employees to learn more about the improved offer and vote on Monday, Nov. 4,” Boeing said in a statement.

CEO Kelly Ortberg said on his first earnings call last week since taking the top job in August that the company has been “feverishly working to find a solution that works for the company and meets our employees’ needs.” Hours later, the workers rejected a negotiated proposal.

Workers have repeatedly pushed for higher compensation as the cost of living in the Seattle area — where technology giants like Microsoft and Amazon have ramped up staffing — has surged in recent years.

The strike has further pushed back Boeing leaders’ plans to stabilize the aerospace behemoth as it reels from the impact of production flaws and the fallout from safety issues, most recently a door plug that blew out midair from a Boeing 737 Max 9 at the start of the year.

Boeing lost more than $6 billion in the last quarter and warned it would continue to burn cash through 2025.

The Boeing strike is expected to dent Friday’s U.S. jobs report.

Read more CNBC airline news

know more

Popular

More like this
Related

Amazon crushed it in e-commerce and cloud, forecast an impressive holiday quarter

Amazon parcels are prepared for delivery at Amazon's Robotic...

Amazon CEO pledges AI investments will pay off as capital expenditures surge 81%

Amazon CEO, Andy Jassy speaking with CNBC's Jim Cramer...

Football quiz: Remember the broken Barcelona XI battered 8-2 by Bayern Munich?

Can you recall the star-studded Barcelona XI humiliated 8-2 by Bayern Munich in 2020? You wouldn’t blame the Barca players if they woke this morning with a sense of trepidation and dread. Because tonight they face Bayern Munich , who seem to bring out the worst in the Catalans. Barca haven’t beaten Bayern in almost

With Reality Labs, Meta risks heading down slippery slope of overspending again

Please enable JS and disable any ad blockerknow more