With the Boeing (BA) strike now stretching into its seventh week, the aerospace giant has upped its wage offer in a bid to end the labor dispute that has cost the company dearly. On Friday, before trading began, Boeing’s stock rose by more than 2% to $152.74 following the announcement of an enhanced contract proposal to its 33,000 striking workers.
This latest offer includes a 38% wage increase over four years, up from the previously rejected 35%, along with a $12,000 ratification bonus. However, the plan stops short of reinstating the traditional defined-benefit pension plan, a major sticking point for the workers.
The International Association of Machinists and Aerospace Workers (IAM), representing the employees, has endorsed this new proposal, suggesting it’s the best deal they could negotiate. The union highlighted that while the pension issue remains unresolved, the current offer includes an option allowing workers to allocate a portion of their bonus into their 401(k), which could soften the stance of those most concerned about retirement benefits.
The strike, which has led to a significant $6 billion loss for Boeing in the third quarter, has also seen a curious turn where Wall Street analysts are now monitoring social media platforms like Reddit to gauge worker sentiment, a move indicative of the unpredictable nature of these negotiations.
Despite the financial strain, with workers losing an average of $10,400 in wages, the new proposal might just tip the scales. The strike has not only halted production of the 737 MAX but also impacted Boeing’s 767 and 777 programs, complicating CEO Kelly Ortberg’s plans for company stabilization and turnaround.
As Monday’s vote looms, the future of Boeing’s production lines hangs in balance, with the company hoping this latest offer will bring workers back to the assembly lines and resume one of the most significant operations in the global aviation industry.
h/t Reuters
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