SEATTLE: Boeing US West Coast factory workers will hold a vote on an improved contract offer on Monday (Nov 4) that could end a seven-week strike and restart jet production at the troubled planemaker.
Boeing’s latest offer includes a 38 per cent wage increase spread over four years, up slightly from a 35 per cent raise in a proposal that was rejected by around two-thirds of the 33,000 striking machinists in a vote 12 days ago.
Boeing’s fourth offer since a strike started on Sep 13 comes at a critical moment for the company, which last week announced a US$24 billion share issue to shore up its finances after the strike halted production of its cash-cow 737 MAX jet.
The 38 per cent wage increase could add about US$1.1 billion over the four-year contract to the workers’ cost base of about US$2.5 billion, according to a note from analyst Jefferies.
The International Association of Machinists and Aerospace Workers (IAM) District 751 President Jon Holden has endorsed the latest contract and warned workers that if they vote to reject the deal then Boeing’s next offer will be worse.
Boeing’s shares rose on Friday on bets that workers would take the deal.
Voting will start at 7am US Pacific Time and end at 7pm with the result expected within hours.
Factory workers Reuters spoke to are divided on the latest contract, with some saying they are ready to return to work while others are willing to hold out for more benefits and the 40 per cent wage increase they originally demanded.
A positive vote would offer some respite for Boeing CEO Kelly Ortberg who took over the company in August on a promise to mend relations with factory workers and bring about a “fundamental culture change” at the company.
Boeing has been lurching from crisis to crisis since January when the door panel blew off a near-new 737 MAX plane in midair, leading to the departure of Kelly’s predecessor, Dave Calhoun.
Ending the stoppage, which has also halted production of Boeing’s 767 and 777 widebody planes, would also benefit aerospace suppliers that have been furloughing workers, as well as airlines facing aircraft delivery delays.
