The strike by around 33,000 workers is putting Boeing under pressure. Now an end could be in sight: The union will vote on a new proposal from the aircraft manufacturer on Wednesday.
After more than a month, a solution is emerging in the strike by tens of thousands of workers at Boeing. The ailing aircraft manufacturer is now offering, among other things, an income increase of 35 percent over a period of four years. The IAM union wants to let its approximately 33,000 members vote on the proposal next Wednesday.
The union said the new offer was negotiated with the support of US Labor Secretary Julie Su. The proposal also provides for a one-off payment of $7,000 (around 6,400 euros) – as well as the receipt of bonus payments that were originally intended to be abolished.
The strike also hit production of the Boeing 737
The strike in the northwest of the United States that began on September 13th paralyzed production of Boeing’s best-selling 737 model and the 777 long-haul jet. The company, which is already struggling with problems, is coming under even greater pressure.
Boeing recently offered the striking workers an income increase of 30 percent over four years. After the union refused to accept this, Boeing withdrew the offer. The IAM had also criticized the fact that Boeing addressed the offer directly to the workers instead of negotiating with them first.
Boeing workers had accepted several zero rounds over the past decade and now wanted a significant increase. They rejected the first Boeing offer with an income increase of 25 percent and the loss of bonus payments with a majority of almost 95 percent.
Boeing resorts to job cuts
A week ago, Boeing announced that it would cut ten percent of its jobs. Boeing boss Kelly Ortberg did not give an exact number of jobs – but according to the latest information from the turn of the year, the aircraft manufacturer had a good 170,000 employees. The company must adapt the workforce to financial reality, explained Ortberg.
The union last went on strike in 2008. The strike lasted 57 days and cost the company around $2 billion, according to analyst estimates.
Boeing’s quality oversight in focus
Boeing has been in crisis for years after a series of mishaps. Recently, quality management came into even greater focus after a fuselage fragment broke out during climb in January on a virtually new Boeing 737-9 Max from Alaska Airlines. It was only through fortunate circumstances that no one was seriously injured. Accident investigators concluded that the delivered aircraft was missing four fasteners on the fuselage section. Boeing was unable to provide any documentation regarding the assembly work when requested by authorities.
Source: Stern
