IAM Rejects Boeing’s Latest Offer
The International Association of Machinists and Aerospace Workers (IAM) declined to put Boeing’s latest offer to a vote, deeming it insufficient to address workers’ concerns.
The proposal, which came after unsuccessful federal mediation, included a 30% general pay increase over four years, reinstatement of a performance bonus, improved retirement benefits, and a doubled ratification bonus of $6,000 if accepted by Friday.IAM District 751 President Jon Holden stated the offer “missed the mark on many of the things our members said were important to them.” The union objected to the lack of negotiation and the tight timeline for organizing a vote among 33,000 workers. This rejection follows an earlier deal offering a 25% raise, which was voted down by more than 90% of workers.
Boeing’s Financial Strain Deepens
The ongoing strike, involving over , threatens to exacerbate Boeing’s already strained finances. The company has implemented hiring freezes and employee furloughs to mitigate costs, with workers scheduled to take one week of furlough every four weeks for the duration of the strike.The labor dispute is impacting production of Boeing’s best-selling 737 MAX and other jets, adding to a tumultuous year that began with a January incident involving a 737 MAX door panel. Industry analysts estimate the strike could cost Boeing several billion dollars and potentially lead to a credit rating downgrade.
Boeing Stock Continues Struggle
As of 11:20 AM EDT on Tuesday, Boeing’s stock (BA) was trading at $154.81, down 0.95% for the day. The company’s market capitalization stood at $95.397 billion, with year-to-date returns significantly underperforming . Boeing’s stock has declined 40.61% year-to-date, compared to the S&P 500’s 19.95% gain.Financial metrics paint a concerning picture, with a trailing twelve-month EPS of -$5.64 and a net income loss of $3.44 billion. Despite these challenges, analysts maintain an average price target of $211.76, suggesting potential upside if Boeing can navigate its current difficulties.More By This Author:Tesla’s Robotaxi Launch: A Game-Changer For Stock Performance?Gold Breaks $2,600 as U.S. Bolsters Middle East Forces Amid Rising TensionsGeneral Motors Stock Dips Following Layoff Announcement And Analyst Downgrade
