Boeing Faces Challenges, IAM Union Votes on Improved Offer
Boeing is set to vote on an improved offer from the IAM union, which includes a 35% pay increase over four years and a one-time payment of $7,000. This comes amidst the company's financial struggles and quality issues, including a recent strike by 33,000 workers.
Boeing is exploring the sale of peripheral business units to bolster its capital, focusing on core operations. This move follows underperformance in its Defense, Space & Security segment and parts of its commercial aircraft business, particularly after the 737 MAX grounding crisis and delays in the 777X program. The company has also announced a possible capital increase of up to $25 billion and secured a $10 billion credit line.
Quality control has been a concern for Boeing. An investigation revealed that four crucial attachment elements were missing from a Boeing 737 MAX 9. Additionally, a nearly new Boeing 737 MAX 9 experienced a fuselage fragment detachment during ascent, raising criticism about the company's quality standards.
Boeing is facing significant challenges, including financial difficulties, quality issues, and a strike that has halted production of popular models. The company is reviewing the sale of underperforming business areas to alleviate these issues and improve liquidity. The IAM union will vote on an improved offer, which includes a substantial pay increase and bonus retention, aiming to address worker concerns.
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