Boeing workers are set to vote on a new pay proposal from the aviation giant, which includes a substantial 38% increase over the next four years. The International Association of Machinists and Aerospace Workers (IAM) union, representing over 30,000 striking employees, has endorsed this offer and plans to conduct a ballot of its members on Monday.
The strike, which began on September 13, has resulted in a significant slowdown in production, exacerbating existing challenges for the company. Previously, the union had requested a 40% pay hike and had rejected two earlier offers, including one that proposed a 35% increase.
In addition to the proposed salary increase, the latest offer includes a $12,000 bonus for workers if an agreement is reached, an increase from the previous $7,000 incentive. IAM officials stated, “It is time for our members to lock in these gains and confidently declare victory,” urging that prolonging the strike wouldn’t be justified given the substantial progress made.
Boeing announced that this offer would elevate the average annual salary to approximately $119,309 over the next four years. The company has encouraged all employees to review the improved offer and participate in the upcoming vote on November 4.
Furthermore, the proposal includes revisions to workers' retirement plans. Following the announcement of the new offer, Boeing shares saw a 2.7% increase in after-hours trading in New York.
The company is eager to conclude the strike and stabilize its finances. Just last week, Boeing's commercial aircraft division reported operating losses of $4 billion for the three months ending in September. In a bid to raise capital, the company initiated a share sale aiming to secure more than $20 billion.
Concerns have also arisen regarding potential credit rating downgrades resulting from a prolonged strike, which would increase Boeing's borrowing costs. Additionally, the firm is proceeding with plans to lay off approximately 17,000 employees, with redundancy notices expected to be issued by mid-November.
Boeing’s recent challenges began in January after a dramatic in-flight incident involving one of its passenger aircraft. The company’s space division also faced setbacks when its Starliner spacecraft returned to Earth without carrying astronauts, further damaging its reputation.