Breaking News: Boeing and Machinists’ Union Reach New Contract Proposal
In a recent development, Boeing and its machinists’ union have reached a new contract proposal that could potentially end a monthlong strike. The ratification vote is scheduled for Wednesday, marking a crucial moment for both parties involved.
The new proposal includes substantial benefits for the workers, such as 35% wage increases over four years, a higher signing bonus of $7,000, guaranteed minimum payouts in an annual bonus program, and increased 401(k) contributions. This is a significant improvement from the previous tentative agreement that was rejected by the machinists.
Acting U.S. Secretary of Labor Julie Su played a key role in mediating between the two parties, highlighting the importance of collective bargaining in achieving favorable outcomes for workers. The ultimate decision on the contract will be in the hands of the union workers, emphasizing the democratic nature of the negotiation process.
Boeing, facing financial challenges due to safety crises and restructuring efforts, is eagerly awaiting the outcome of the vote. The company is expected to report significant losses and take charges in its commercial and defense units. A ratified contract on Wednesday would be a crucial milestone for new CEO Kelly Ortberg, who has been tasked with reshaping the company amidst ongoing challenges.
In related news, Boeing recently announced job cuts of 10% of its workforce and plans to cease production of 767s after fulfilling current orders in 2027.
Stay tuned for more updates on this developing story as it unfolds. For more exclusive insights and expert analysis, be sure to check out CNBC PRO.