Factory workers at Boeing have voted to accept a contract offer and end their strike after more than seven weeks, clearing the way for the company to restart idled Pacific Northwest assembly lines. But the strike was just one of many challenges the troubled US aerospace giant faces as it works to return to profitability and regain public confidence. Boeing's 33,000 striking machinists disbanded their picket lines late Monday after leaders of the International Association of Machinists and Aerospace Workers district in Seattle said 59 per cent of union members who cast ballots agreed to approve the company's fourth formal offer, which included a 38 per cent wage increase over four years. Union machinists assemble the 737 Max, Boeing's bestselling airliner, along with the 777 or triple-seven jet and the 767 cargo plane at factories in Renton and Everett, Washington. Resuming production will allow Boeing to generate much-needed cash, which it has been bleeding. Even for a company the
The union plans to hold a vote on the proposal on November 4
The strikes by unionised workers in the nearly 4-million strong electrical engineering and metal industries hit companies such as Porsche AG, BMW and Mercedes
Time is running out for Boeing, historically the largest US exporter, and its biggest union to reach a deal before the presidential election on Nov. 5
The company said in regulatory filings that it could raise as much as $25 billion in stock and debt with its investment-grade credit rating at risk
Investors and regulators have had Boeing under the microscope since a door panel flew off a near-new 737 MAX jet in midair in January
During the conciliation talks, representatives from both the management and the striking workers agreed that all workers would immediately call off the strike and return to work
Roughly 33,000 workers have been on strike since Sept 13, seeking a 40 per cent wage increase over four years
Boeing plans to lay off about 10% of its workers in the coming months as it continues to lose money and tries to deal with a strike that is crippling production of the company's best-selling airline planes. New CEO Kelly Ortberg told staff in a memo Friday that the job cuts will include executives, managers and employees. The company had already imposed rolling temporary furloughs, but Ortberg said those will be suspended because of the impending layoffs. The company will delay the rollout of a new plane, the 777X, to 2026 instead of 2025. It will also stop building the cargo version of its 767 jet in 2027 after finishing current orders. Boeing has lost more than $25 billion since the start of 2019. Union machinists have been on strike since Sept. 14. Two days of talks this week failed to produce a deal.
In a filing with NLRB, Boeing also accused the union's leaders of misrepresenting the terms of Boeing's offer to its members and of not bringing negotiators to the table with authority to make a deal
Reaching an accepted deal is critical for Boeing, ratings agency S&P estimates the strike is costing it $1 billion a month and it is at risk of losing its prized investment grade credit rating
Andhra Pradesh's Sri City is said to have approached Samsung for an informal round of talks to shift the plant as the strike at Tamil Nadu unit enters second month
Samsung this week made a proposal to provide a monthly incentive of Rs 5,000 ($60) until March, more air conditioned buses, a diversified cafeteria menu and a gift card of $24 in case of a child birth
In the unfortunate event of an employee's death, Samsung will provide immediate relief of Rs 100,000 to the family
Sources aware of the talks among the state government, employees, and the company blame Citu, which is leading the protests, for the impasse
More than 1,000 workers have disrupted production and protested close to the factory since September 9
The White House reiterated on Monday it was not considering using the federal Taft-Hartley Act to halt a strike, which would force workers to go back on the job while negotiations continue
On the 17th day of the strike, the company also urged its workers to return to work, expressing its willingness to talk directly with the employees and not with the Centre of Indian Trade Unions
Striking workers demanding hike to Rs 36,000/mth over three years
According to sources, a significant number of striking workers returned to work on Monday after the show cause notice was issued