Boeing Machinists’ Union Reaches Agreement to End Strike After Seven Weeks
At Extreme Investor Network, we are excited to report that Boeing and its machinists’ union have come to a new negotiated offer to raise worker pay and potentially end a crippling strike that has been ongoing for the past seven weeks. The vote on the new proposal is set for Monday, and the union is urging workers to approve the contract to get back into factories as quickly as possible.
The agreed-upon offer includes a significant 38% general wage increase over four years, up from the previous offer of 35%. This brings the compounding pay increases to close to 44%, which is a substantial win for the union and its members. Additionally, workers have the option of a $12,000 one-time ratification bonus or a previous offer of a $7,000 ratification bonus and a $5,000 401(k) contribution.
Boeing’s more than 32,000 machinists, primarily based in the Seattle area, went on strike on Sept. 13 after rejecting a tentative agreement. The strike has had a significant impact on Boeing’s operations, with most aircraft production being halted. The strike also had ripple effects on U.S. employment numbers, as evident in the latest U.S. jobs report.
President Joe Biden congratulated both the union and Boeing for reaching the new contract proposal, highlighting the sacrifices made by the machinists over the years. The Biden administration has been involved in negotiations during the strike, emphasizing the importance of reaching a resolution for all parties involved.
This strike comes at a critical time for Boeing as it grapples with mounting losses and aims to stabilize its operations. The company lost over $6 billion in the last quarter and anticipates continued cash burn through 2025. Despite these challenges, Boeing’s CEO, Kelly Ortberg, remains optimistic and urges workers to vote on the new proposal, emphasizing the need to come together and focus on rebuilding the business.
One key aspect of the new contract proposal is Boeing’s commitment to building its next airplane in the Puget Sound area, addressing a sore spot among workers who were concerned about the relocation of 787 Dreamliner production to a non-union factory in South Carolina. This move is seen as a positive step towards securing jobs and stability for Boeing workers in the region.
Stay tuned to Extreme Investor Network for more updates on this developing story and other crucial business news. Join our community of savvy investors and stay ahead of the curve with exclusive insights and analysis. Subscribe today and take your investment game to the next level!