Boeing presents more advantageous pricing options
For close to a month now, Boeing has been dealing with a large-scale strike by tens of thousands of its employees. The contention revolves around a new contract agreement, and the union IAM has recently agreed to fundamental terms. Based on Boeing's declaration, the package includes an increase in wages by 35% over a period of four years. The IAM gives its nod of approval.
A potential resolution seems to be on the horizon in this worker strike, which has been ongoing for over a month. Boeing, the aircraft manufacturer facing challenges, now proposes, amongst other things, a 35% increase in remuneration over a span of four years. The IAM union will present this proposition to its almost 33,000 members for a vote next Wednesday. Previously, the union had stated on X that the current proposed terms were "worth considering." Initially, the union had demanded a 40% wage increase over four years and other enhancements.
The negotiations for this new offer were supported by US Labor Secretary Julie Su, according to the IAM. The proposal also includes a one-time payment of $7,000 (approximately €6,400) and the retention of bonus payments that were initially meant to be terminated.
The strike, which began on September 13 in the northwestern United States, has halted the production of Boeing's top-selling 737 model and long-haul 777 jet. The company, already grappling with issues, is under additional pressure due to the strike. Boeing had earlier offered striking workers a 30% wage increase over four years, but withdrew the offer after the union rejected it. The IAM had also criticized Boeing for engaging directly with workers instead of negotiating with them first.
Boeing to trim workforce
The Boeing workers had accepted wage freezes in the past decade and were now pushing for a significant rise. They rejected Boeing's initial offer, which included a 25% wage increase and the elimination of bonus payments, by a vast majority of almost 95%.
Last week, Boeing announced plans to reduce its workforce by 10%. Boeing CEO Dave Calhoun did not specify the exact number of jobs to be cut, but according to data from the beginning of the year, Boeing employed around 170,000 people. Calhoun explained that the company needed to adjust its workforce to the current financial situation. The union went on strike in 2008 for the last time, and that strike lasted for 57 days, according to analyst estimates, costing the company an estimated $2 billion.
Boeing has been grappling with crisis modes for years following a series of setbacks. Most recently, the quality management has come under intense scrutiny after a part of the fuselage broke off a nearly new Boeing 737-9 Max operated by Alaska Airlines during takeoff in January. Remarkably, no one was seriously injured. Investigators concluded that four fasteners for the fuselage section were absent from the delivered aircraft. Boeing was unable to provide documentation for the assembly work when requested by authorities.
Following Boeing's announcement of a 10% workforce reduction, trade unions are closely monitoring the situation to protect their members' interests. Despite the ongoing strike, trade unions and Boeing continue to engage in negotiations, with Boeing offering a 35% wage increase over four years and other benefits.
