Boeing Increases Pay Offer Amid Ongoing Strike

Boeing is making headlines as it raises its pay offer to striking workers, proposing a significant 38% pay increase over the next four years in a bid to end the seven-week walkout. The International Association of Machinists and Aerospace Workers (IAM), which represents over 30,000 striking employees, has endorsed this new offer and will hold a vote on it on Monday, November 4.

Boeing raises its pay offer to striking workers, proposing a 38% increase over four years and a $12,000 bonus.

The strike commenced on September 13 and has led to a major slowdown in production, exacerbating existing challenges for the company. Workers had initially demanded a 40% pay increase and rejected two prior offers, including a 35% raise.

In addition to the pay increase, the latest proposal includes a bonus of $12,000 for workers if a deal is reached, an increase from the previously offered $7,000. The IAM expressed confidence in the new offer, urging its members to accept the gains achieved thus far and consider the potential consequences of extending the strike.

If accepted, Boeing's offer would result in average annual pay rising to approximately $119,309 over the next four years, along with changes to retirement plans for workers. Following the announcement of this improved offer, Boeing shares saw a 2.7% increase in after-hours trading.

The ongoing strike has reportedly cost Boeing nearly $10 billion and contributed to a reported operating loss of $4 billion in its commercial aircraft division for the quarter ending September. In an effort to shore up finances, Boeing has launched a share sale to raise over $20 billion and is also planning to lay off around 17,000 employees, with redundancy notices expected to be issued mid-November.

With the vote approaching, the future of the strike and its impact on Boeing's operations remains uncertain.