Union says Boeing proposal for 30 percent raise does not go far enough

The new and “final” proposal from the management of aircraft manufacturer Boeing to increase wages by 30 percent over the next four years does not go far enough for the union. The International Association of Machinists and Aerospace Workers (IAM), Boeing’s largest union, said this on Monday evening.

More than 33,000 Boeing workers in the Seattle area walked off the job on September 13 to demand higher pay. An initial proposal, in which management proposed a 25 percent pay increase over four years, was rejected almost unanimously. Boeing then came up with what it called a final proposal that included a 30 percent raise and a doubled bonus of $6,000.

READ ALSO: 25 percent pay increase, but Boeing workers strike for higher wages

“With this (proposal), Boeing is still far from meeting” the workers’ demands, the union’s regional branch, IAM-District 751, said in a statement. The union initially demanded a 40 percent raise to compensate for high inflation in recent years.

Boeing was one of the winners on the New York stock exchanges on Monday after the aircraft manufacturer presented the new collective labor agreement offer to the union. Investors reacted with hope and put Boeing’s share price up 2 percent.

Interest rate cut

The mood on Wall Street was further cautiously positive. The Dow Jones index ended 0.2 percent higher at 42,124.65 points. The broad S&P 500 rose 0.3 percent to 5,718.57 points. Tech benchmark Nasdaq closed 0.1 percent higher at 17,974.27 points.

Investors also responded to comments from US central bank policymakers on last week’s big rate cut. Several policymakers indicated they supported the half-percentage-point cut. They also voiced support for more cuts this year.

READ ALSO: US central bank takes major action and cuts interest rates for the first time since 2020

Stellantis gained 3 percent. According to Bloomberg, the car company is looking for a successor to CEO Carlos Tavares. His term runs until early 2026, but the 66-year-old Tavares may stay longer at the company, which is struggling with weaker demand for electric cars and increasing competition from automakers in China.

Tesla climbed 4.9 percent, reaching its highest level in about two months. Analysts at British bank Barclays expect the electric carmaker’s third-quarter deliveries to be higher than experts had generally predicted.

Intel rose 3.3 percent. Major asset manager Apollo Global Management has offered to make a multi-billion dollar investment in the American chip company, insiders told Bloomberg. Earlier, sources told Bloomberg that Qualcomm was interested in acquiring Intel and that the former had made an approach attempt. If a deal is reached, it could be one of the largest mergers and acquisitions ever.

Automaker General Motors (GM) fell 1.7 percent after ratings downgrades by investment bank Truist Securities and investment bank Bernstein.