Connect with us

Business

Boeing’s Next Big Problem Could Be A Strike By 32,000 Workers

Published

3 months ago

on

Boeing

Boeing has faced a slew of negative news over the last six years, with nearly nothing but issues. Later this month, it may add a strike by 32,000 workers to its list of difficulties.

The contract between Boeing and the International Association of Machinists expires at 11:59 p.m. PT on September 12. Without a new contract, the workers who construct Boeing’s jets in Washington state are poised to launch the company’s first strike in 16 years. According to the chairman of the local union, the odds of reaching an agreement are slim right now.

“We’re far apart on all the main issues – wages, health care, retirement, time off,” Jon Holden, president of IAM District 751, told CNN last week. “We continue to work through that, but it’s been a tough slog to get through.”

Boeing’s Next Big Problem Could Be A Strike By 32,000 Workers

It’s just the latest in a string of serious and high-profile issues at a company that has dealt with fatal crashes blamed on a design flaw in its best-selling jet, accusations that it prioritized profits and production speed over quality and safety, plummeting aircraft sales, an agreement to plead guilty to criminal charges of deceiving regulators, and massive financial losses covered by soaring debt levels.

Both sides claim they want to reach an agreement without a strike. However, rank-and-file union members’ outrage at recent contract concessions and challenges at the once-proud company may make achieving that agreement in the short term challenging.

“We continue to bargain in good faith as we focus on the topics that are important to our employees and their families,” according to Boeing’s statement. “We’re confident we can reach a deal that balances the needs of our employees and the business realities we face as a company.”

However, Holden stated that any contract that would gain the approval of the rank-and-file must recoup some of the concessions the union gave up in two previous accords since 2008.

Both of these discussions were about contract extensions, not new deals. In both situations, the union felt compelled to agree to concessions, such as increased member payments for health insurance and the elimination of traditional pension schemes, or risk losing thousands of jobs. Boeing threatened to create nonunion plants to produce the 737 Max and 777X. Boeing, which already has a nonunion 787 Dreamliner plant in South Carolina, canceled plans for new nonunion facilities as part of those agreements.

Boeing enters these discussions with a new CEO, Kelly Ortberg, who took the job on August 8. He said that he intends to “reset our relationship” with the union after meeting with Holden and other union leaders during his first week on the job. However, Holden stated that he has noticed no differences in Boeing’s negotiating position.

In July, Ortberg’s predecessor, former CEO Dave Calhoun, likewise told investors that Boeing’s objective is to avoid a strike, implying that the company is willing to pay whatever it takes to avoid a work stoppage.

“We know the wage demands will be high,” he said. “We are not scared to treat our staff well during this process. So, we’ll just work as hard as we can to avoid a strike.”

According to the corporation, IAM members’ incomes have climbed by 60% in the last ten years due to regular wage increases, cost-of-living adjustments, and incentive compensation. However, the union remains dissatisfied with the previous compromises. It also seeks increased time off and better employment guarantees to avoid losing jobs to nonunion plants.

“We cannot go through another period where a year or two from now where our jobs are threatened,” Holden pointed out.

Several unions, including the Teamsters at UPS and the United Auto Workers at GM, Ford, and Stellantis, received double-digit salary increases in recent union agreements. However, in those cases, they were bargaining with firms making record profits and had ample resources to meet union requests.

By comparison, Boeing’s issues have resulted in $33.3 billion in core operating losses over the last five years, driving the corporation into deep debt. It is in danger of having its debt downgraded to junk bond status, but Holden argues that the union still has bargaining power in these negotiations.

Despite its issues, Boeing remains a huge power in the US economy, and shutting it down will have far-reaching consequences. Beyond the 32,000 union members among the almost 150,000 US employees, the corporation calculates its economic impact at $79 billion, supporting 1.6 million direct and indirect jobs at more than 9,900 suppliers in all 50 states.

Boeing’s Next Big Problem Could Be A Strike By 32,000 Workers

However, more critically, Boeing is one of just two main providers of commercial aeroplanes to the airline sector. The industry is already coping with Boeing’s delayed deliveries, which cannot be resumed until the company addresses concerns about the safety and quality of its aircraft.

“They haven’t said they can’t afford our proposals,” he told me. “They’re reasonable. We’re in a difficult situation due to their actions to continue boosting dividends and share repurchases while reducing R&D. They have been unable to launch a new airplane. We are in this position as a result of such judgments and crashes.

One of the union’s negotiation objectives is to have a union representative on the Boeing board of directors, which has been heavily criticized for the company’s numerous issues.

“The board certainly deserves to be criticized,” Holden added. “We do not want to run the company. However, we want to ensure that our perspectives are heard regarding the decisions. We adore the Boeing Company. The board members don’t. They compromised its integrity.

SOURCE | AP

Related Topics:
Continue Reading

Business

Trudeau Accelerates Bond Selloff Over Mass Spending Fears

Published

2 days ago

on

2024-11-23

By

Trudeau, Bond Market
Trudeau accelerated a bond selloff due to expectations of faster growth and a deeper deficit

Prime Minister Justin Trudeau has accelerated bond selloffs, citing fears of a larger deficit over his GST giveaway. Investors were concerned he was returning to his free-spending strategy as an election loom.

On Thursday, Trudeau unveiled a C$6.3 billion ($4.5 billion) tax relief and rebate program. It includes a two-month moratorium on federal sales tax on various commodities such as Christmas trees, wine, toys, and books and a C$250 check for almost 19 million Canadians, or over half of the population.

The declaration looked to mark the end of a brief period of fiscal restraint, as Finance Minister Chrystia Freeland committed to contain budget deficits to prevent stoking inflationary pressures.

Now that inflation has returned to the Bank of Canada’s 2% target, policymakers have reduced the benchmark interest rate by 125 basis points since June.

Trudeau’s Liberal government sees an opportunity to dig deeper into the public purse, but some analysts believe investors are keeping a careful eye on the country’s debt.

Bonds continued to fall on Thursday following the announcement, as the 10-year benchmark yield rose 7 basis points to 3.457%. After retail data showed a rise in consumer spending on Friday, it increased by up to 3.488%.

As the Trudeau government considers additional fiscal spending, concerns about Canada’s financial situation persist.

Budget Shortfall

Freeland has yet to publish final spending and income figures for the fiscal year that ended in October. Parliamentary Budget Officer Yves Giroux predicts a deficit of C$46.8 billion, much exceeding Freeland’s self-imposed aim of a C$40 billion shortfall.

Despite promises to reduce deficits, the Trudeau government continues to increase expenditure. This year’s budget includes a new capital gains tax inclusion rate to balance the cost of new housing and social initiatives.

This sparked anger from investors and entrepreneurs but allowed Freeland to present a consistent deficit despite significant spending.

The recent declaration indicates that Trudeau’s government no longer feels restrained in its capacity to use economic stimulus to restore favor.

Pierre Poilievre’s Conservatives have led most surveys by roughly 20 points for over a year. They have pounded the prime minister on affordability and promised to reduce taxes, especially income taxes. An election is expected in late October 2025.

The sales tax break will run from December 14 to February 15. The left-wing New Democratic Party intends to support it but has stated that it will continue to advocate for its permanent implementation and expansion to include additional items.

Let the Bankers Worry

Following Trudeau’s announcement, traders in overnight swap markets reduced their bets that the Bank of Canada will drop interest rates by 50 basis points for the second time in December, lowering the odds to fewer than 25% by the end of Thursday. As of late Friday morning, the odds were less than 17%.

The announcement also encouraged several experts to improve their short-term projections for Canada’s GDP. Analysts at the Bank of Montreal predict that the country’s GDP will increase at a 2.5% annualized rate in the first three months of 2025, up from 1.7%.

Speaking to reporters on Friday, Trudeau praised his government’s approach to program expenditure, claiming it fosters optimism and possibilities for families and the middle class.

“We’re focusing on Canadians. “Let the bankers worry about the economy,” Trudeau stated.

Related:

Canada’s Budgetary Watchdog Warns Over Trudeau’s Spending

Canada’s Budgetary Watchdog Warns Over Trudeau’s Spending

Continue Reading

Business

Forced Sale Google Chrome Could Fetch $20 Billion

Published

3 days ago

on

2024-11-21

By

Sale Google Chrome

Antitrust officials in the US could force the sale of Google’s Chrome browser for up to $20 billion, demonstrating the tremendous worth of the world’s most popular web browser.

Bloomberg Intelligence attributes Chrome’s projected worth to its more than 3 billion monthly active users. The US Department of Justice is preparing to request a federal judge order the browser’s separation from Google’s parent company, Alphabet.

Chrome’s worth comes from its overwhelming 61% market share and its crucial role in Google’s advertising ecosystem. User data enables businesses to better target adverts, and the browser also acts as an important distribution mechanism for Google’s AI technologies.

Industry analysts think it may be difficult to find a suitable buyer. While tech behemoths like Amazon could finance the purchase, they would likely face regulatory scrutiny.

AI businesses, such as OpenAI, may emerge as more viable contenders. They could potentially leverage Chrome to broaden their reach and develop an advertising business.

“It’s not directly monetizable,” one analyst told Bloomberg. “It functions as a gateway to other things. It’s unclear how you would assess that in terms of pure revenue generation.”

Google opposes prospective sales, claiming that they will hamper innovation. The firm does not break out Chrome’s revenue individually in its financial filings, even though the browser’s user data plays an important part in the company’s principal revenue stream, advertising.

The DOJ’s suggestion follows Judge Amit Mehta’s August decision that Google had illegally monopolized the search industry. The judge will consider the recommended remedies at a two-week hearing in April 2024, with a final judgment due in August 2025.

Related News:

Appeals Court Delays Order For Google To Open Its App Store In Antitrust Case

Appeals Court Delays Order For Google To Open Its App Store In Antitrust Case

Continue Reading

Business

Bitcoin Has Set a New Record And Is Approaching $100,000.

Published

3 days ago

on

2024-11-21

By

Bitcoin

(VOR News) – Bitcoin broke beyond the $98,000 mark for the first time on Thursday as investors awaited Donald Trump’s second term as president. All of this happened during the day. As such, cryptocurrency has reached a significant turning point.

According to Coin Metrics, the top cryptocurrency was trading at $97,541.61 during the most recent trading session. Merchants provided this information. This suggests a price gain of more than three percent during the previous trading session.

When the period began, Bitcoin peaked at $98,367.00.

During the premarket trading session, MicroStrategy, a platform that facilitates cryptocurrency foreign exchange trading and serves as a bitcoin proxy, saw a 13% gain. Coinbase, on the other hand, had a 2% rise during that period. Furthermore, all of these increases occurred simultaneously.

The market value of Mara Holdings increased by 9%, which helped raise the valuation of mining companies overall. This was among the factors that led to the total rise.

Because of the widespread belief that President Trump will usher in a new era of prosperity for cryptocurrencies, one marked by more favorable laws and the possible creation of a national strategic bitcoin reserve, the price of Bitcoin has been rising steadily this month.

The most recent change brought about by the increase was the consequence of higher financing rates and more open interest in the futures market during Asian trading hours. The rise was the catalyst for this change. This action was prompted by the ensuing rush.

Throughout its lifespan, this legislation was the catalyst for this change for a variety of reasons. At the same time, spot market premiums decreased, according to CryptoQuant statistics. All of this happened at the same time.

Furthermore, a number of short liquidations have been sparked by the recent spikes in Bitcoin’s price, which has caused the price to rise overnight. As a result, the price has gone up much more. As a result, the total number of short liquidations has increased.

According to CoinGlass, these liquidations have effectively produced more than $88 million in capital during the last 24 hours.

Rob Ginsberg, an analyst at Wolfe Research, noted in a study released on Wednesday that “historically, following previous movements of this magnitude, Bitcoin has either entered a consolidation phase or disregarded the overbought condition as investors accumulate.” This phrase relates to the fact that this particular move has happened before.

Ginsberg stated this in reference to the evolution of Bitcoin over time.

Ginsberg’s answer makes reference to Bitcoin’s propensity to go through a period of consolidation. The comment also made reference to this.

He said, “Considering we are emerging from an extended consolidation phase and the price has reached a new high, it suggests that the pursuit is underway.”

The crucial psychological milestone of $100,000 is expected to be reached in the upcoming weeks, and this breakthrough could happen as early as Thursday. It seems likely that this level will be reached. There is a chance that this new development will take place.

This task will be carried out against the backdrop of this historical era. In addition, if Trump were to win a second term, federal budget deficits would increase, inflation would likely increase, and the dollar’s position in international affairs would change.

The administration that Trump would run during his presidency would be responsible for these consequences. All of these characteristics would positively impact the value of Bitcoin as a currency if they were taken into account in the order that they are presented.

The price of bitcoin had risen by more than 130% by the beginning of 2024.

SOUREC: CNBC

SEE ALSO:

PayPal’s Technical Challenges Are Affecting Thousands Of Customers Globally.

NVIDIA’s Earnings: The Leader In AI Chips Demonstrates Relentless Growth.

 

Continue Reading

Trending