Boeing Workers Set to Vote on New Wage Offer as Strike Enters Eighth Week
In a positive turn for Boeing, shares rose by 3.5% on Friday amidst growing speculation that the ongoing strike involving 33,000 machinists could soon come to an end. Since September 13, these workers have halted jet production, significantly impacting the company’s financial stability and operations.
The machinists are set to vote on a new contract proposal that promises a 38% wage increase over four years, an improvement from the previous offer of 35%. Additionally, this latest proposal includes a one-time ratification bonus of $12,000. However, it does not address workers’ calls for the restoration of a defined-benefit pension, which remains a point of contention.
Boeing’s workforce has already rejected two prior proposals, and the upcoming vote is seen as critical. Aerospace director Ben Tsocanos from S&P Global Ratings remarked, “The proposal is approaching the union’s original target of a 40% wage increase over four years. The length of the strike—almost two months—also adds pressure for a resolution.”
Boeing’s CEO, Kelly Ortberg, has publicly urged employees to accept the current offer, emphasizing the importance of refocusing efforts on rebuilding the business and enhancing airplane production. Despite the encouraging news, sentiments among workers are mixed; some are eager to end the strike, while others remain resolute in their demand for a more substantial pay increase.
The strike has brought production of Boeing’s popular 737 MAX jets to a standstill, along with the 767 and 777 widebody aircraft, resulting in an estimated loss of $6 billion in the third quarter alone. This financial hit complicates Ortberg’s efforts to stabilize the company amid ongoing challenges.
Economic analysts like Dino Kritikos from Fitch Ratings have noted that the proposed deal offers significant financial improvements for workers. The backing of the union leadership could further strengthen the case for ratification, which is critical considering the substantial financial losses workers have incurred during the strike—averaging around $10,400 in lost wages.
As Boeing shares have seen an 8.3% decline since the onset of the strike, the upcoming vote holds substantial implications not only for the workers but also for the company’s recovery trajectory.