A pivotal moment is approaching for Boeing Co (BA) as its striking machinists prepare to vote on a new labor contract proposal on Monday. This vote could potentially end the more than seven-week-long strike that has disrupted the aerospace giant’s operations.
Boeing’s latest offer represents a significant increase from its previous proposals, promising a 38% wage increase over four years. This surpasses the 35% increase that was rejected by union members near the end of last month. The latest contract offer marks the fourth proposal from Boeing and the third time the International Association of Machinists and Aerospace Workers (IAM) have voted on a new deal. The first two proposals were rejected, with the most recent seeing 64% of members voting against it.
The stakes are high, as a simple majority in favor of this new proposal could bring the strike to an end. Workers who walked off the job on September 13th could return to Boeing on November 12th if the contract is approved. Union members have until 10 p.m. ET on Monday to cast their votes. Anyone in line by the deadline will be allowed to participate, according to IAM Union District 751.
Boeing has stated that machinists would average $119,309 in compensation at the end of the proposed four-year contract. The company initially offered workers a 25% increase over four years, but the union has been pushing for a 40% increase. Last week, IAM reportedly informed its members that this current deal might be the best possible outcome, emphasizing that the union had extracted everything it could through bargaining and labor withholding.
Boeing’s newly appointed CEO, Kelly Ortberg, has also urged workers to return to the company. In a note to employees on Friday, Ortberg stated, “It’s time we all come back together and focus on rebuilding the business and delivering the world’s best airplanes. There are a lot of people depending on us.” The ongoing strikes have reportedly cost Boeing over $100 million per day. This financial strain comes on top of the company’s recent struggles, including a quarterly loss of $10.44 per share and a projected cash burn through 2025. In response, Boeing announced a $20 billion offering last week.
Investors are closely watching the outcome of this vote. Boeing’s stock price was up 0.82% at $155.79 at the time of publication on Monday. The resolution of this strike will have a significant impact on Boeing’s future, potentially impacting its ability to recover from recent challenges and meet the demands of the global aviation industry.
