According to reports from American media outlets on October 22, Boeing mechanics who are currently on strike are set to vote this week on a new contract proposal that could potentially end the weeks-long work stoppage.
ABC News has reported that the International Association of Machinists and Aerospace Workers (IAM), which represents around 33,000 Boeing employees, stated that the new proposal includes a 35% wage increase over a four-year contract period. Additionally, it would enhance Boeing’s contributions to workers’ retirement benefits.
Experts interviewed about the situation believe the new contract proposal is likely to gain majority support from union members due to the improved offer. However, they also caution that, given the ongoing intense standoff, predicting the workers’ response remains challenging.
The IAM has not responded to requests for comments immediately. However, in a statement posted online, the union mentioned that, with support from U.S. Acting Labor Secretary Julie Su, they received a proposal to negotiate an end to the strike for member consideration.
Multiple outlets, including CNN, highlight that this is the first strike Boeing has faced in 16 years, marking a significant setback for the company. Standard & Poor’s has estimated that Boeing could lose approximately $1 billion monthly as a result. Furthermore, the company’s credit rating may be downgraded to “junk” status.
Further analysis indicates that Boeing’s challenges extend beyond the impact of the strike. In 2018 and 2019, two fatal accidents involving Boeing’s 737 MAX resulted in the deaths of 346 people. Since 2024, there has been a resurgence of incidents involving Boeing planes, raising renewed safety concerns. These issues have significantly strained the company’s financial situation.
According to The Wall Street Journal, to address the crisis, Boeing has announced plans to secure up to $35 billion in new financing to bolster its finances. Boeing’s President and CEO, Dave Calhoun, also stated that the company plans to reduce its workforce by approximately 10% in the coming months.
