Striking Boeing workers will vote Monday on a new offer from the aviation giant, promising a 38% pay increase over four years. The International Association of Machinists and Aerospace Workers (IAM), representing over 30,000 striking members, has endorsed the proposal and expressed optimism about reaching a deal.
The strike, which began on September 13, has slowed production significantly and added pressure on Boeing amid a series of challenges. Previously, the union sought a 40% pay hike, rejecting two earlier proposals, including the last offer with a 35% increase. The latest offer includes not only the proposed pay rise but also a one-time $12,000 bonus, up from the previous $7,000.
“It’s time for our members to lock in these gains and confidently declare victory,” IAM stated, noting that continuing the strike might no longer be necessary given the progress achieved.
Boeing’s offer would bring the average annual salary to $119,309 over the next four years and includes adjustments to retirement plans. The company encouraged employees to review the offer ahead of the November 4 vote.
Following the announcement, Boeing’s stock rose by 2.7% in extended trading. The company has been working to end the strike and stabilize its finances after reporting $4 billion in losses in its commercial aircraft division last quarter. To bolster funds, Boeing launched a $20 billion share sale this week, facing pressure from potential credit downgrades and rising borrowing costs.
In response to the ongoing challenges, Boeing plans to cut around 17,000 jobs, with layoffs expected to start in mid-November.
For more latest news and update visit UK Profits
