[ad_1]
Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
The union representing 33,000 striking Boeing machinists said on Saturday that it had reached a tentative agreement to end a month-long work stoppage that has crippled the plane maker.
The International Association of Machinists and Aerospace Workers, which represents Boeing staff, told members in a statement that it had received a “negotiated proposal” that “is worthy of your consideration”.
Members will vote on whether to end the strike by ratifying the contract on Wednesday, the same day that Boeing is due to report its results for the third quarter.
The potential deal comes a week after Boeing chief executive Kelly Ortberg said the company would cut 17,000 jobs and delay the first delivery of its 777X jet in an effort to stem losses.
Bank of America analysts estimate that the stoppage is costing Boeing $50mn per day.
Union members walked out of plants in Washington state nearly five weeks ago in a dispute over pay and benefits, halting production of Boeing’s bestselling 737 Max aircraft, as well as its 767 and 777 jets, compounding its financial troubles.
US regulators had already forced the company to slow down production of the 737 in an effort to improve quality control after a door panel blew off one of its aircraft during an Alaska Airlines flight in January.
The strike’s impact on Boeing’s revenues led it to announce plans to raise up to $25bn in new capital.
Its key supplier Spirit AeroSystems Holdings said on Friday that it would furlough 700 workers employed on the 767 and 777 programmes from the end of the month. The company said it had run out of storage after building up inventory.
In July, Boeing pleaded guilty to misleading US regulators about a flight control system that caused two fatal crashes of the 737 Max in 2018 and 2019.
IAM’s negotiating committee said in a statement that the new agreement included a 35 per cent wage increase spread over four years and was brokered with the help of acting US labour secretary Julie Su.
Workers will also receive a one-off $7,000 bonus and increased contributions to their retirement savings accounts.
However the revised offer does not reinstate Boeing’s defined benefit pension plan, seen as a sticking point by some union members who are resentful about past pay increases at a time when executives were richly rewarded.
The tentative deal does not guarantee workers will agree. No new strike vote is needed because members are already on strike.
In a statement, IAM leaders Jon Holden and Brandon Bryant said the agreement was “a testament to the resolve and dedication of the frontline workers who’ve been on strike”.
But, they added, “workers will ultimately decide if this specific proposal is sufficient in meeting their very legitimate needs and goal of achieving respect and fairness at Boeing”.
[ad_2]
Source link
