Boeing, the American aircraft maker, and unions announced over the weekend that striking Boeing machinists would vote on a new proposal on July 23rd. One of the proposals is to give mechanics a raise within four years. If the proposal is adopted, the International Association of Machinists and aerospace workers, the union representing the striking Boeing workers, may end its five-week strike action.
Boeing will increase workers’ pay by 35% and increase the company’s contribution to employees’ pension accounts under a new deal, the CNN said Monday, but Boeing did not agree to restore the higher pension arrangements that had been scrapped. According to the unions, the intervention of the Biden administration’s acting Labour Secretary helped mediate negotiations between the union and Boeing Management and push for an interim agreement.
The strike caused Boeing to halt production of nearly all commercial aircraft. Boeing has suffered five consecutive years of safety and operational difficulties since the Boeing 737737MAX, during which time the company has lost more than $33bn. On Wednesday, Boeing will release a new quarterly report, and Wall Street expects it to post another large loss.
“Wall Street Journal” disclosed on the 20th, Boeing is seeking to sell non-core assets to cash in to save themselves. Earlier this month, Boeing also announced plans to cut 17,000 jobs, or 10 per cent of its global workforce. Boeing’s current woes could push its credit rating into“Junk” status, causing the company’s borrowing costs to surge and making it hard to get funding, a Bloomberg analysis said Tuesday, boeing’s woes could spill over into its fragile supply chain.