Striking Boeing machinists to vote on new contract Monday
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Boeing and the machinists union that's rejected two recent contract offers are edging closer to a deal.
Why it matters: The machinists' strike, which started seven weeks ago, has hobbled Boeing, sending the company scrambling to raise funds to shore up its balance sheet.
Workers will vote Monday on a third offer, which has been endorsed by union leaders.
- The aerospace giant offered the machinists a 38% raise over four years in the proposal disclosed Halloween evening.
Zoom in: That's up from a 35% increase in the deal the machinists dismissed a week ago and the 25% offered in the initial offer from Sept. 8.
- In addition to the wage increase, the deal allows workers to take $5,000 in funds previously allocated for a retirement match as a boost to their ratification bonus instead.
The big picture: The Boeing strike is so significant that it impacted the U.S. jobs report today, which indicated that 44,000 transportation jobs vanished in October — most of them at the troubled jet maker.
Zoom in: IAM 751, which represents the machinists, signaled that it doesn't believe Boeing will budge any more than it already has.
- "We believe asking members to stay on strike longer wouldn't be right as we have achieved so much success," the union said in a statement. "In every negotiation and strike, there is a point where we have extracted everything that we can in bargaining and by withholding our labor. We are at that point now and risk a regressive or lesser offer in the future."
What we're watching: Boeing shares ticked up 3.5% Friday ahead of Monday's vote.
