Thousands of Boeing Employees Could Strike Next Week: What To Know?
Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content.
More than 3,200 union workers at three St. Louis-area plants that produce U.S. fighter jets voted "overwhelmingly" to go on strike on Sunday after they rejected a proposed contract that included a 20 percent wage increase over four years.
The company said it was preparing for a strike that the union said could begin on Aug. 4.
Why It Matters
The company has faced serious difficulties over recent years including several safety-related incidents.
In March, Transportation Secretary Sean Duffy said Boeing had lost the trust of the American people and needed strict oversight after a mid-air panel blowout on a new Alaska Airlines 737 MAX 9 airplane that was missing four key bolts and two fatal crashes in 2018 and 2019 that killed 346 people. A Boeing 787 Dreamliner crashed in India last month killing 260 people.
A strike late last year by machinists' union memes put a heavy toll on the company, compounding existing production issues and stalling the manufacturing of its key aircraft, including the 737 MAX, 767, and 777 models.
Pro-union signs are pictured outside the Boeing Renton Production Facility on November 3, 2024. More than 3,000 members of the International Association of Machinists and Aerospace Workers in the St. Louis area voted on Sunday...
Pro-union signs are pictured outside the Boeing Renton Production Facility on November 3, 2024. More than 3,000 members of the International Association of Machinists and Aerospace Workers in the St. Louis area voted on Sunday to go on strike. MoreWhat To Know
The International Machinists and Aerospace Workers union, or IAM, said the vote by District 837 members was overwhelmingly against the proposed contract.
The current contract was to expire at 11:59 p.m. CT on Sunday, but the union said a "cooling off" period would keep a strike from beginning for a week, until Aug. 4, according to The Associated Press.
Union leaders had recommended approving Boeing's offer sent last week, calling it a "landmark" agreement that the offer would improve medical, pension and overtime benefits in addition to pay.
Dan Gillian, Boeing's Air Dominance vice president, general manager and senior St. Louis Site executive said in an emailed statement that the company was disappointed that the Boeing employees voted down "the richest contract offer we've ever presented to IAM 837 which addressed all their stated priorities."
The Boeing Air Dominance division produces several military jets, including the U.S. Navy's Super Hornet, as well as the Air Force's Red Hawk training aircraft.
The division is expanding manufacturing facilities in the St. Louis area for the new U.S. Air Force fighter, the F-47, after it won the contract earlier this year.
The Next Generation Air Dominance (NGAD) fighter jet program, initially conceived as a "family of systems" centered around a sixth-generation fighter jet, is meant to replace the F-22 Raptor.
What People Are Saying
Boeing's Air Dominance Vice President Gillian said in the statement: "We've activated our contingency plan and are focused on preparing for a strike. No talks are scheduled with the union."
IAM said in a statement: "Union members delivered a clear message: the proposal from Boeing Defense fell short of addressing the priorities and sacrifices of the skilled IAM Union workforce. Our members are standing together to demand a contract that respects their work and ensures a secure future."
What Happens Next
The strike is due to begin after a one-week "cooling off" period, on Aug. 4.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Boston Globe
19 minutes ago
- Boston Globe
Trump's latest tariff deadline is approaching. Here are the trade deals the US has announced so far.
Advertisement But three months later, only two deals emerged: with the U.K. and Vietnam. A separate 'framework' for a deal was hashed out with China. And by early July, Trump began sending warning letters that higher tariffs would be imposed against dozens of countries on Aug. 1. Get Starting Point A guide through the most important stories of the morning, delivered Monday through Friday. Enter Email Sign Up Since then, the U.S. has announced more trade frameworks. But, key details remain sparse — or not immediately captured in writing. Here's what we know about the agreements so far, in the order of those most recently announced. South Korea The U.S. president said he The countries have also agreed for South Korea to buy $100 billion in energy resources from the U.S. and for South Korea to give to the U.S. $350 billion for 'investments owned and controlled by the United States, and selected by myself, as president,' Trump said. Advertisement European Union The U.S. and the EU announced a trade framework But some key details require more work. The headline of the agreement, unveiled July 27, is that the 15% tariff rate will apply to 70% of European goods brought into the U.S. — with the EU later confirming that that rate applies to pharmaceuticals, semiconductors, and car and car parts. But the remaining 30% of those imports is still open for negotiations. European Commission President Ursula von der Leyen said that both sides had agreed to zero tariffs for a range of 'strategic' goods. Meanwhile, Trump pointed to heightened investments from European companies in the U.S. — including what Trump said was $750 billion (638 billion euros) worth of natural gas, oil and nuclear fuel over three years, as well as an additional $600 billion (511 billion euros) under a political commitment that isn't legally binding, officials said. Japan On July 22, Trump announced a trade framework The newly-agreed on 15% tariff rate also applies to Japanese cars — marking a welcome relief for automakers like Toyota Motor Corp. and Honda — which, like other automakers, have faced a 25% levy on key parts and finished vehicles going into the U.S. since earlier this year. But car companies in other countries, including U.S. competitors, worry that this could put them at a disadvantage. Advertisement Philippines Shortly after a July 22 meeting with Philippine President Ferdinand Marcos, Jr., Trump announced that he would In return, Trump said on Truth Social, the U.S. would not pay tariffs on American goods it shipped to the Philippines. But additional details remained unclear. Marcos said his country was considering options such as having an open market without tariffs for U.S. automobiles, but emphasized details were still left to be worked out. Indonesia On July 15, Trump again took to social media to announce that he's agreed to lower his planned tariffs on Indonesian goods to 19% — down from a previously-threatened levy of 32% — while American goods sent to the southeast Asian country will face no tariffs. A fact sheet from the White House later confirmed that 'over 99% of U.S. products' exported to Indonesia would be sent duty-free. Indonesian President Prabowo Subianto said he will continue to negotiate with Trump, in hopes of further lowering the coming U.S. tariffs. Vietnam On July 2, Trump announced a trade deal with Vietnam that he said would allow U.S. goods to enter the country duty-free. Vietnamese exports to the U.S., by contrast, would face a 20% levy. That's less than half the 46% 'reciprocal' rate Trump proposed for Vietnamese goods back in April. But in addition to the new 20% tariff rate, Trump said the U.S. would impose a 40% tax on 'transshipping'' — targeting goods from another country that stop in Vietnam on their way to the United States. Washington complains that Chinese goods have been dodging higher U.S. tariffs by transiting through Vietnam. Advertisement United Kingdom On May 8, Trump When the deal was announced, for example, the British government notably said that the U.S. agreed to exempt the U.K. from its then-universal 25% duties on foreign steel and aluminum — which would have effectively allowed both metals from the country to come into the U.S. duty-free. But the timing for when those cuts would actually take effect stayed up in the air for almost a month. It wasn't until early June, when Trump hiked his steel and aluminum tariffs to a punishing 50% worldwide, that the U.S. acknowledged it was time to implement the agreement. And even then, U.S. tariffs on British steel and aluminum did not go to zero. The U.K. was the only country spared from Trump's new 50% levies, but still faces 25% import taxes on the metals. China At its peak, Trump's new tariffs on Chinese goods totaled 145% — and China's countertariffs on American products reached 125%. But on May 12, the countries agreed to their own 90-day truce to roll back those levies to 30% and 10%, respectively. And in June, details began trickling in about a tentative trade agreement. Advertisement U.S. Treasury Secretary Scott Bessent said that China had agreed to make it easier for American firms to acquire Chinese magnets and rare earth minerals critical for manufacturing and microchip production. Meanwhile, the Chinese Commerce Ministry said that the U.S. would 'lift a series of restrictive measures it had imposed on China.' Other key details of the deal remain murky — including the timing of implementation for these terms. On July 29, China's top trade official said the two sides had
CNBC
an hour ago
- CNBC
CNBC Daily Open: The tariff rate you get is not just about your trade policies
In the frenzied run-up to Friday, August 1— the day when U.S. President Donald Trump's new tariffs come into effect (no more delays!) — America's major trading partners such as Japan, the European Union and now, South Korea, have come to an agreement with the country. All of them will be subject to 15% tariffs on U.S. imports of their goods. But India? Not only has there not been a deal yet, Trump unilaterally imposed a 25% tariff on the South Asian country — a higher-than-expected number, as analysts had widely expected India to secure a favorable deal with America. Worse, the tariff will exist alongside an additional "penalty," which Trump said is the price India has to pay for its military and energy transactions with Russia. In doing so, Trump's actions seem to be suggesting that the White House's trade policies is not based simply on the balance of trade, as Trump is fond of bringing up, or even how much he likes you — see his admiration of the U.K.'s King Charles and the country's 10% tariff rate. It's also about who your friends are. Essentially, Trump appears to be implying that, even if you are an up-and-coming influential figure, if you hang out with the uncool kids (who invade and bomb other countries), you can't sit with us. Perhaps Trump can afford to alienate allies because the U.S. economy is still unexpectedly strong. It expanded 3% in the second quarter, much higher than the 2.3% Dow Jones estimate, and Magnificent Seven earnings are handily topping estimates. Much has been discussed about the decline of American exceptionalism, but, for now, the U.S. is still the queen bee. The Federal Reserve holds interest rates. The Federal Open Market Committee voted 9-2 on the decision — the first time since late 1993 that multiple governors cast "no" votes. Chair Jerome Powell said the Fed still needs to see the effects of tariffs on inflation. India to pay 25% tariffs on exports to the U.S. On top of that, Trump said Wednesday that the South Asian country will also face a "penalty" for buying military equipment and energy from Russia. Separately, South Korea has reached a deal with the U.S. that will see it subject to a 15% tariff rate, Trump announced. Meta Platforms and Microsoft beat earnings expectations. Year on year, Meta's revenue grew 22%, while that of Microsoft increased 18%. During extended trading, Microsoft shares jumped more than 8% to put the company's market cap above $4 trillion. U.S. stocks are weighed by Fed conference. The S&P 500 fell Wednesday on Powell's comment that a September rate decision is still in the air. However, futures rose later in the day stateside on comfortable earnings beats by Meta and Microsoft. The Stoxx Europe 600 closed flat. [PRO] Investors are aggressively borrowing money to buy stocks. It's a sign of market exuberance, according to Jim Reid, head of macro and thematic research at Deutsche Bank, who added that this pace was last seen during market bubbles. iPhone maker Foxconn joins $1 trillion AI data center market with new alliance Foxconn on Wednesday said it is taking a stake in TECO Electric & Machinery Co., as it looks to supercharge its efforts to become a key player in building artificial intelligence data centers. The Taiwanese firm, formally known as Hon Hai, is looking to replicate the success it has had in consumer electronics in the world of AI. It's a play that could unlock Foxconn's access to a potential $1 trillion of spending by companies on data centers in the coming years, according to Counterpoint Research. —
Yahoo
an hour ago
- Yahoo
Alphabet (GOOGL): Outperform Rating Holds as AI Efforts Gain Traction
Alphabet Inc. (NASDAQ:GOOGL) is one of the . On July 28, JMP Securities reiterated its Market Outperform rating on the stock with a $225.00 price target. The rating affirmation follows Google's launch of Web Guide, an experiment by Search Labs that leverages AI to intelligently organize the search results page. According to the firm, Web Guide is likely the next iteration of Google search, following previous experiments like AI Overviews and AI Mode. The firm anticipates it to be an evolution of Google's efforts to improve the links section in search results. Pixabay/Public Domain The firm further noted how Google has been cautious with its adoption of the AI Mode, reflecting on how the company has been balancing search monetization with engagement. This may be because AI Mode likely monetizes at a lower rate in comparison to traditional search. Moreover, while Google is likely to have strong near-term results driven by its superior commercial search capabilities compared to ChatGPT, there may be some challenges, such as the antitrust trial penalties and improving e-commerce experiences from competitors. Alphabet Inc. (NASDAQ:GOOGL) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses. While we acknowledge the potential of GOOGL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None. Sign in to access your portfolio
