Workers of Boeing are expected to ballout on a revised deal put forward by the aerospace manufacturing company as it tries to end the strike that really crippled production. More than 30,000 of the members from the International Association of Machinists and Aerospace Workers IAM that have been on strike already voted for this latest deal and agreed on a ballot on November 4.
The strike began on September 13 after the union dismissed two previous offers, where it demanded a 40% wage increase and eventually accepted a 35% raise. The new offer consists of a $12,000 bonus to every employee if the deal is sealed, from the previous offers of $7,000. IAM urged its members to accept the gains as they said, “It is time for our members to lock in these gains and confidently declare victory.”.
Better Retirement Benefits and Financial Changes
In addition to the increase in pay and bonus, Boeing’s offer also encompasses changes in retirement plans. When workers approve the offer, average annual pay is projected to hit $119,309 over the four-year period.
The strike has already strained Boeing’s finances. In the last quarter, the commercial aircraft division of Boeing reported $4 billion in operating losses. The company kicked off a share sale early this week in an effort to raise more than $20 billion, as concerns mounted that a prolonged strike would lead to credit downgrades, increasing future borrowing costs. Boeing’s stock was up 2.7 percent in after-hours trading when the deal was announced.
Planned Layoffs and Recent Challenges
Boeing plans to lay off about 17,000 employees, with the first notices expected by mid-November. This is part of broader financial stabilization efforts after several setbacks, including a recent incident in which one of its aircraft malfunctioned mid-air and a reputational hit to its space business after the Starliner vessel returned to Earth without astronauts on board.
Therefore, the ballot result will decide on continuing Boeing’s initiatives toward stabilization of the workforce, its re-entry into production, and other current financial and operational challenges.