Striking Boeing workers reject 35% pay raise offer
Boeing workers, who are on strike, have rejected a new offer from the manufacturing giant of the planewhich included a 35 percent salary increase over four years.
The International Association of Machinists and Aerospace Workers (IAM) union said 64 percent of its members voted against the proposed deal.
More than 30,000 Boeing employees joined the strike, which began on September 13, after the initial offer was rejected.
Hours earlier, Boeing CEO Kelly Ortberg warned that the company was at a “crossroads” as the company’s losses ballooned to roughly $6 billion.
“After 10 years of sacrifice, we still have ground to make up, and we hope to do so by resuming negotiations immediately,” union representatives said in a statement.
“This is democracy in the workplace and also clear evidence that there are consequences when a company mistreats its workers year after year,” it added.
Boing (AP Photo/Elaine Thompson, File)
The workers rejected the offer a second time
Boeing declined to comment on its latest offer being rejected.
It is the second time striking workers have rejected a proposed deal in a formal vote. The previous offer last month was rejected by 95 percent of the employees, it says BBC.
Earlier, Ortberg, who took over as CEO in August, said he had worked “tirelessly” to stabilize the firm and repair its reputation, which had been tarnished by production concerns.
“This is a big ship that will take some time to turn around, but when it does, it has the capacity to be great again,” he said.
The latest crisis at Boeing began in January when there was a dramatic failure of one of the passenger planes in the air. His space business also took a reputational hit after his Starliner the ship was forced to return to Earth without a crew.
Boing (Beta/AP)
Strike and problems
The strike exacerbated the problems, leading to a dramatic slowdown in production. Ortberg said that the company was “burdened with too much debt” and that it had disappointed customers due to work failures.
Boeing’s commercial aircraft business reported operating losses of $4 billion in the past three months, while its defense unit lost nearly $2.4 billion.
The strike is “costing them $100 million a day, so the loss of money is really significant. All this is happening in a very difficult situation for Boeing,” said Anna McDonald of Aubrey Capital Management.
Ortberg claimed the firm was in a strong position, with a backlog of roughly 5,400 orders for its planes. But he warned investors that restarting the company’s factories, whenever the strike ends, will be difficult.
Return plan
“It’s much harder to turn this on than to turn it off. That’s why it’s complicated to do this right. “We have a detailed return to work plan and I’m really looking forward to getting everything back and starting to work on that plan,” he said.
The company announced plans to cut roughly 10 percent of its workforce earlier this month. Thousands of employees are already on vacation due to the strike, which also affected suppliers.
Ortberg told investors that his first priority is a “fundamental culture change.”
“We need to prevent problems from occurring and work better together to identify, fix and understand the root cause,” he pointed out.
Boeing’s suppliers are also feeling the effects of the strike. Spirit AeroSystems, which makes aircraft bodies, has already announced a 21-day furlough for 700 of its workers. He also warned that he could lay off staff if the Boeing strike continues next month.
Source: BIZLife
Photo: AP Photo/Ted S. Warren, AP Photo/Elaine Thompson, Beta/AP
Source: bizlife.rs
