Breaking News: Boeing Workers To Decide Fate Of 38-Day Strike

33 thousand Boeing mechanics are set to vote this week on a new contract proposal that could end the 38-day strike. The machinists, represented by the International Association of Machinists and Aerospace Workers (IAM), previously rejected a contract offer in September. This new proposal offers a significant raise and enhanced benefits, though some key demands remain unmet. 

Details of the New Proposal  

The revised contract includes a 35% wage increase over four years, a notable improvement from the previous 25% offer. However, workers had initially demanded a 40% pay raise. Additionally, Boeing has increased its contributions to the workers' 401(k) plans, but the company did not reinstate the defined pension plan that was taken away 10 years ago, which many workers hold firm about. 

Union and Expert Reactions  

IAM leaders are urging members to consider the new offer carefully, with many experts predicting it will gain majority support. The strike has taken a toll on both the workers, who have been surviving on $250 per week from the strike fund, and Boeing, which is losing approximately $108 million per day in revenue. 

Financial Impact  

Mid-ranking workers typically earn around $800 per week, while higher-paid employees can make close to $2,000. As the strike stretches on, the financial strain has increased, with Boeing furloughing some white-collar workers and announcing plans to cut 17,000 jobs—around 10% of its workforce. 

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Voting and Market Reaction  

Boeing workers will cast their votes on Wednesday. A majority approval will end the strike. In the meantime, Boeing’s stock has surged 5%, reflecting optimism from investors about the likelihood of the deal passing. The outcome of this vote could not only bring an end to the costly strike but also shape future negotiations between Boeing and its workers.