Boeing and union negotiators to resume talks next week amid strike, federal mediators say

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September 14, 2024
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Boeing and union negotiators will return to the bargaining table early next week, U.S. federal mediators said on Friday, as the two sides try to end a strike threatening the airplane maker’s turnaround.

The U.S. Federal Mediation & Conciliation Service late on Friday said it was convening the parties with a federal mediator after speaking to both sides, less than a day after union members voted by a huge majority to reject Boeing’s contract offer and went on strike.

“The parties will resume meetings early next week,” it said in a statement.

More than 30,000 members of the International Association of Machinists and Aerospace Workers (IAM) who produce Boeing’s top-selling 737 MAX and other jets in the Seattle and Portland areas voted on their first full contract in 16 years, with 94.6% rejecting Boeing’s offer and 96% favoring a strike. Workers vowed to fight for a better pay offer than the company had made.

Shortly after midnight on the West Coast, striking workers started to gather outside Boeing factories in the Seattle area.

Chief Financial Officer Brian West said Boeing wants to get back to the negotiating table, saying the walkout will make it harder for the plane maker to meet the production target for the 737 MAX jet and stabilize its supply chain. The union was also eager to return to the table as quickly as possible.

“This is about fighting for our future,” said Jon Holden, who headed negotiations for Boeing’s largest union before announcing the strike vote result on Thursday.

Boeing declined to comment on the mediator’s comments and the union was not immediately available for comment.

Workers have been protesting all week in Boeing factories in the Seattle area that assemble Boeing’s MAX, 777 and 767 jets. On Friday evening, members in the union hall cheered and chanted “Strike! Strike! Strike!”

Boeing’s stock fell 3.7% on Friday. It has tumbled almost 40% so far this year, slashing the company’s market value by roughly $58 billion. Boeing’s corporate bonds also lost value, with spreads between their yields and comparable U.S. Treasuries widening sharply.

A long strike could further damage Boeing’s finances, already groaning due to a $60 billion debt pile. The planemaker needs to generate sufficient cash flow to meet payments on the debt. A strike also would weigh on airlines that fly Boeing jets and suppliers that manufacture parts.

Moody’s put the planemaker’s rating on review, while Fitch said a prolonged strike could increase the risk of a downgrade. On Thursday, S&P Global Ratings said an extended strike could hurt Boeing’s overall rating, which is one notch above junk status. A downgrade could increase Boeing’s cost to issue debt.

Boeing said it had offered workers everything it could and now must reach a deal to end the strike while planning for investments needed to replace its best-selling single-aisle models. CFO West said the company would be “laser-like focused on action to conserve cash,” adding the strike will “jeopardize our recovery.”

New CEO Kelly Ortberg was brought in just weeks ago to restore faith in the planemaker after a door panel blew off a 737 MAX jet mid-air last January. He offered a contract including a pay rise of 25% over four years, far lower than the 40% workers had demanded. Union leaders recommended approval of the contract, but angry members voted overwhelmingly to strike and fight for the original 40% wage increase demand and an annual bonus.

Source: Reuters

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September 26, 2024
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3 minutes Read

Biden announces $8 billion in military aid for Ukraine

U.S. President Joe Biden announced more than $8 billion in military assistance for Ukraine on Thursday to help Kyiv repel Russian invaders, using a visit by President Volodymyr Zelenskiy to make a major commitment.

The aid includes the first shipment of a precision-guided glide bomb called the Joint Standoff Weapon, with a range of up to 81 miles (130 km). The medium-range missile gives Ukraine a major upgrade to the weapons it is using to strike Russian forces, allowing the Ukrainians to do it at safer distances.

The bomb, capable of striking targets with high accuracy, is to be dropped from fighter jets. Biden will not announce that Washington would let Ukraine use U.S. missiles to hit targets deeper in Russia, a U.S. official said.

“We’re making clear that we stand with Ukraine now and in the future,” Biden told reporters ahead of a bilateral meeting with Zelenskiy in the Oval Office. He said the U.S. would continue to help Ukraine strengthen its position on the battlefield, and that he had directed the Pentagon to allocate all remaining security funding by the end of his term in January.

Zelenskiy thanked Biden for his support and said it was important to secure Ukraine’s future in the European Union and the North Atlantic Treaty Organization. Zelenskiy has long sought NATO membership, but the allies have stopped short of taking that step.

The bulk of the new aid, $5.5 billion, is to be allocated before Monday’s end of the U.S. fiscal year, when the funding authority is set to expire. Another $2.4 billion is under the Ukraine Security Assistance Initiative, which allows the administration to buy weapons for Ukraine from companies rather than pull them from U.S. stocks.

This will provide Ukraine with additional air defense, unmanned aerial systems and air-to-ground munitions, as well as strengthen Ukraine’s defense industrial base and support its maintenance and sustainment requirements, Biden said.

Under his plan, the president said, the Defense Department will refurbish and provide Ukraine with an additional Patriot air defense battery and more Patriot missiles.

Biden ordered the Pentagon to expand training for Ukrainian F-16 pilots, including by supporting the training of an additional 18 pilots next year.

Zelenskiy thanked Biden and the U.S. Congress for the new military aid package, saying Ukraine would use it “in the most efficient and transparent manner”.

“I am grateful to the United States for providing the items that are most critical to protecting our people,” Zelenskiy said on X, mentioning the Patriot battery, drones and long-range missiles.

Source: reuters.com

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September 26, 2024
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Lebanon ceasefire deal makes progress, France reports at UN

France said on Wednesday that efforts would continue in coming hours to clinch a deal on a proposal for a 21-day ceasefire in the Lebanon conflict between Israel and the Iranian-backed militant group Hezbollah.

“We have made important progress in the last few hours and we will continue our efforts in the coming hours,” French Foreign Minister Jean-Noel Barrot told reporters outside a meeting of the U.N. Security Council.

Barrot, who was due to travel to Lebanon later this week, earlier told the 15-member council: “We are counting on both parties to accept it without delay, in order to protect civilian populations and allow for diplomatic negotiations to begin.”

Israel widened its airstrikes in Lebanon on Wednesday and at least 72 people were killed, according to a Reuters compilation of Lebanese health ministry statements. The ministry earlier said at least 223 were wounded.

Israel’s military chief said a ground assault was possible, raising fears the conflict could spark a wider Middle East war.

The U.S. was working with other countries to avert an escalation of hostilities, enable displaced people in Lebanon and Israel to return home and allow for discussions on a broader diplomatic solution, Deputy U.S. Ambassador to the U.N. Robert Wood told the council.

Israel’s U.N. Ambassador Danny Danon told reporters before the meeting that Israel would welcome a ceasefire and preferred a diplomatic solution. He then told the Security Council that Iran was the nexus of violence in the region and peace required dismantling the threat.

Iran’s Foreign Minister Abbas Araqchi told reporters before the council meeting that his country supported Hezbollah and would not remain indifferent if the conflict in Lebanon spiraled.

Lebanese Prime Minister Najib Mikati called on the Security Council to put pressure on Israel for “an immediate ceasefire on all fronts.” Asked if a ceasefire can be reached soon, he told Reuters: “Hopefully, yes.”

World leaders voiced concern the conflict – running in parallel to Israel’s war in Gaza against Palestinian Hamas militants also backed by Iran – was escalating rapidly as the death toll rose in Lebanon and thousands fled their homes.

Israeli Prime Minister Benjamin Netanyahu was due to arrive in New York on Thursday and address the U.N. General Assembly on Friday.

Source: reuters.com