The best it gets? Boeing machinists union urges striking members to vote yes
It is time “to lock in these gains and confidently declare victory,” the Boeing machinist union told its striking members after Boeing’s latest contract offer. The deal on the table includes 38% pay raises over four years, just shy of the 40% union members demanded and much higher than the 25% the company started negotiations at.
Boeing’s latest offer also quadruples the original ratification bonus to $12,000 and comes with a strong 401(k) company match. District 751 members of the International Association of Machinists and Aerospace Workers will vote on the contract Monday, Nov. 4.
The contract offer notably leaves off what it appeared machinists wanted most: the return of pensions. But the union is endorsing and recommending the latest offer after nearly two months off the job.
“In every negotiation and strike, there is a point where we have extracted everything that we can in bargaining and by withholding our labor. We are at that point now and risk a regressive or lesser offer in the future,” IAM 751 posted.
A week ago, 64% of union members rejected Boeing’s offer of 35% raises, despite union negotiators saying the offer was “worthy of [their] consideration.” Now, with a new contract in front of them, striking machinists are still casting doubt on the latest deal days before casting their vote.
“They’re going to get a no vote from me,” one worker told Seattle news station KIRO. “They’ve used legal mumbo jumbo to re-explain it, but no, it’s the same offer as last time, up slightly.”
“It is lucrative, more lucrative than it has been, but there’s still room for improvement,” another told KOMO.
“When you think about what’s been going on at Boeing with issues of quality, with issues of ignoring employee reports of whistleblowing around those quality issues, I think that those workers have an outsized amount of bargaining power in this very instance, in this moment,” Alicia Modestino, research director of Northeastern University’s Dukakis Center, said.
Workers will vote on the latest contract offer all day Monday, the day before the presidential election. Meanwhile, the impact of the strike is showing up in national economic data ahead of the national election.
The U.S. economy recorded adding just 12,000 jobs in October, about 100,000 jobs below estimates. Strikes and two hurricanes dragged down the results.
Boeing machinists reject labor contract, extend strike
Thousands of Boeing employees will continue to strike after union members rejected the new labor deal offered by the company Wednesday, Oct. 23. Members of the International Association of Machinists voted 64% against the deal.
Day 41 – Strike Update October 23, 2024
Tonight, IAM District 751 and W2 Members voted by 64% to reject the company's latest offer and continue the current strike. Here are the remarks IAM District 751 President Jon Holden gave during the announcement.
That deal would have seen wages go up by 35% over four years, with an immediate 12 % raise.
Before Wednesday’s vote, Boeing warned it would continue to burn cash through 2025 and reported a $6 billion quarterly loss — its largest since 2020. The strike, which began on Sept. 13, is costing the company about $1 billion a month.
The biggest sticking point for union members is the lack of a traditional pension plan.
In 2014, union members narrowly voted to give up the pension after the company threatened to build the 737 Max and 777X planes at non-union facilities. It’s a move many members still resent a decade later.
“Well, they get their pension, don’t they? CEOs get $100 million with the stock options when they retire,” said Boeing employee Charles Fromong. “It’s costing them billions a month. It’s costing me thousands. How do you like it? You’ve been costing me thousands for ten years. No wage increases, 1% COLAS, one cent, you know, and then working two weekends, three weekends straight. No life balance. I feel sorry for the young people. I’ve spent my life here and I’m getting ready to go. But they deserve a pension, and I deserve an increase.”
Boeing’s new CEO Kelly Ortberg has said reaching a deal with machinists is a priority to get the company back on track after years of safety and quality problems. Earlier this month, he announced Boeing will cut 10% of its global workforce, which is about 17,000 jobs.
Boeing: The perfect story of what’s wrong with America’s economy?
Boeing’s bright spot this year was the hiring of its new CEO, an engineer and aerospace chief named Kelly Ortberg, after years of finance men at the helm. But Ortberg’s arrival is clouded by the controversies hanging over Boeing, from hours-long hearings on safety issues to a fraud charge to the first worker strike in 16 years.
Let’s not forget the stranded astronauts at the International Space Station.
Boeing’s troubles started long before two 737 MAX planes crashed in less than five months between 2018 and 2019, killing 346 people. Several experts point to the 1997 merger between McDonnell Douglas and Boeing as the trigger.
Their focus was on making numbers, not making planes.
Gautam Mukunda, leadership expert
What followed was a series of leadership decisions that prioritized profits and quarterly earnings over planes, according to Gautam Mukunda, a leadership expert, Harvard fellow and author of “Indispensable: When Leaders Really Matter.”
“It is a story about a larger pathology in the American corporate sector that just devastated the American economy and turned it from an economy that was focused on making things to an economy that was focused on playing games with spreadsheets,” Mukunda said. “And that story is why Boeing is the perfect example of everything that’s gone wrong.”
There is no alternative but to fix Boeing.
Gautam Mukunda, leadership expert
In the video above, Mukunda delivers a master class on Boeing’s history and leadership decisions that have steered this American company to its current crossroads.
Is Ortberg the right guy to fix Boeing’s problems? Should the company move its headquarters back to the Seattle area? What are Boeing workers saying in private about the culture at Boeing? What companies are most at risk of following Boeing’s path? Mukunda answers these questions and more in this Straight Arrow News interview. Watch the video above.
Dave Calhoun was hired to fix Boeing and failed. Is Kelly Ortberg up to task?
Boeing has picked a new chief to hopefully thrust it into the air. After a monthslong search, the aerospace giant selected Robert “Kelly” Ortberg, the former CEO of aerospace company Rockwell Collins.
Ortberg replaces Dave Calhoun, who announced earlier this year he’s retiring after four years at the helm. Calhoun was hired to turn things around at Boeing back in 2020 — his predecessor was fired over safety concerns following two deadly crashes that killed 346 people — but since then, it seems like it’s been one crisis after another for the company.
Most recently, Boeing agreed to plead guilty to a felony charge of conspiring to defraud the federal government. The Department of Justice said Boeing had violated a 2021 agreement that allowed the company to escape criminal charges after the two crashes.
Ortberg will start in his new position Aug. 8, escaping this week’s earnings call and next week’s two-day hearing by the National Transportation Safety Board on the Alaska Airlines door blowout that happened in January. Ortberg will start the day after the hearing concludes.
Unlike Calhoun, who came from a more financial background, Ortberg’s degree is in mechanical engineering. While Boeing’s financials are also struggling – on Wednesday, July 31, the company reported a bigger quarterly loss and weaker revenue than expected – its safety issues are paramount.
“I’m extremely honored and humbled to join this iconic company,” Ortberg said in a statement. “Boeing has a tremendous and rich history as a leader and pioneer in our industry, and I’m committed to working together with the more than 170,000 dedicated employees of the company to continue that tradition, with safety and quality at the forefront. There is much work to be done, and I’m looking forward to getting started.”
Ortberg’s more than three decades of aerospace experience put him at the top of Boeing’s list, and now he inherits a long list of critical to-dos.
Boeing to plead guilty to fraud after fatal 737 Max crashes
Boeing agreed late Sunday, July 7, to plead guilty to a criminal fraud conspiracy charge related to two deadly crashes involving its 737 Max jets. With the guilty plea, Boeing will be labeled a criminal felon, potentially jeopardizing the company’s ability to secure government contracts.
As part of the plea agreement with the Department of Justice, Boeing will pay an additional $243.6 million fine, on top of a previously paid $243 million fine.
Boeing has also agreed to invest at least $455 million in safety and compliance programs.
The plea deal still requires a judge’s approval. Families of the victims say they will ask the judge to reject the deal, as they prefer Boeing to face a trial and harsher penalties.
Top House Democrats call for Biden to step aside in private meeting
President Joe Biden’s first broadcast interview following the debate leaves top House Democrats still seeking a change. And, Hurricane Beryl makes landfall in Texas, bringing dangerous winds and rain along the coast. These stories and more highlight The Morning Rundown for Monday, July 8, 2024.
Several House Democrats call for Biden to step aside during private meeting
President Joe Biden hoped his first broadcast interview since his poor debate performance would reassure his own party and establish a consensus that he is the best candidate to face former President Donald Trump in November’s election.
However, following the interview, top Democratic members of the House are aligning in their belief that Biden should withdraw from the race.
House Democrats, convened by Minority Leader Hakeem Jeffries in a virtual private meeting Sunday, July 7, discussed how to persuade the president to step aside as their party’s candidate, according to multiple attendees.
During the meeting, several ranking committee members expressed that Biden should end his campaign. Some of the attendees included were Reps. Jerrold Nadler and Joseph Morelle of New York, Adam Smith of Washington and Mark Takano of California.
Rep. Susan Wild, D-Penn., released a statement post-meeting, sharing her concerns about Biden’s electability, which she noted aligns with worries of Americans nationwide.
Despite this, some Democratic lawmakers are standing by the president. Rep. Don Beyer, D-Va., affirmed his support for Biden, and Rep. Richard Neal, D-Mass., praised him as “a visionary,” encouraging the party to persist with his candidacy.
In an ABC News interview on Friday, July 5, when Biden was questioned about Democratic leaders potentially asking him to step aside, he expressed confidence in his support within the party.
“If the Lord Almighty came down and said, ‘Joe, get out of the race,’ I’d get out of the race,” Biden said. “But that’s not going to happen.”
Also in the ABC interview, Biden was asked whether he would undergo an independent medical examination including cognitive tests. He responded that he faces a cognitive test with his duties as president every day. On Sunday, July 7, James Comer, the Republican chair of the House Oversight Committee, requested Biden’s personal physician testify about the president’s health.
Left-wing alliance wins most seats in French election, fails to secure majority
With just weeks to go until it hosts the Summer Olympics, France faced uncertainty Monday, July 8, after the second round of legislative elections ended Sunday, July 7, without any party winning an absolute majority, resulting in a hung parliament.
https://twitter.com/AP/status/1810177131718029559
The left-wing alliance, called the New Popular Front, secured the most seats in the French Parliament. Formed just in June, the alliance won 182 seats. This was far short of the 289 needed for a majority in the 577-seat National Assembly.
French President Emmanuel Macron’s centrist Ensemble alliance won 163 seats, while the far-right National Rally trailed with 143 seats. These results were unexpected, as the National Rally was anticipated to be the big winner following a strong performance in the previous round.
Macron, who plans to remain in office until 2027, called for these snap elections hoping to provide France with a “moment of clarity.” However, Macron has work cut out for him. His prime minister announced his resignation on July 8, but Macron rejected it, as the French president faces the challenge of governing with a deeply divided government.
Boeing to plead guilty to fraud after fatal 737 crashes
Boeing agreed late Sunday, July 7, to plead guilty to a criminal fraud conspiracy charge related to two deadly crashes involving its 737 Max jets. With the guilty plea, Boeing will be labeled a criminal felon, potentially jeopardizing the company’s ability to secure government contracts.
As part of the plea agreement with the Department of Justice, Boeing will pay an additional $243.6 million fine, on top of a previously paid $243 million fine.
Boeing has also agreed to invest at least $455 million in safety and compliance programs.
The plea deal still requires a judge’s approval. Families of the victims say they will ask the judge to reject the deal, as they prefer Boeing to face a trial and harsher penalties.
Beryl makes landfall as Category 1 hurricane
Hurricane Beryl made landfall as a Category 1 storm southwest of Houston, Texas, early Monday morning, according to the National Hurricane Center. Beryl packed winds of 80 miles per hour, with even stronger gusts.
As Beryl moves further inland across eastern Texas, it’s bringing heavy rain, storm surges, possible tornadoes and strong winds.
The area could see rainfall between 5 to 10 inches, with some spots possibly getting up to 15 inches.
Beryl is expected to quickly downgrade to a tropical storm and weaken further to a tropical depression by the time it reaches Arkansas on Tuesday, July 9.
Paramount, Skydance agree to merger creating new $28B company
Paramount Global and Skydance Media have reached an agreement to merge after months of negotiations, creating a new company valued at $28 billion.
Before the merger, Skydance Media will pay $2.4 billion in cash to acquire a controlling stake in Paramount, which includes Paramount Pictures, the broadcast network CBS, and cable networks like MTV and Nickelodeon.
This merger marks the end of an era for Paramount, a media giant that has been run by the Redstone family for decades.
David Ellison, the son of Oracle co-founder Larry Ellison and founder of Skydance, will become the chairman and CEO of the new Paramount.
The agreement includes a 45-day period during which Paramount’s board can seek a better deal if possible.
NASA volunteers complete year-long Mars simulation
Four NASA volunteers completed a year-long Mars simulation at Houston’s Johnson Space Center, testing life on the Red Planet without leaving Earth.
Inside a 3D-printed 1,7000 square-foot habitat for 378 days, the crew tackled challenges like isolation, resource limits and even conducted simulated spacewalks mimicking what a real Mars mission would feel like.
“Our culture is far from perfect, but we are taking action and making progress,” Calhoun said in his prepared remarks. “We understand the gravity, and we are committed to moving forward with transparency and accountability, while elevating employee engagement.”
This will mark the first appearance of a high-ranking Boeing official before Congress since a panel blew out of a 737 Max during an Alaska Airlines flight in January, raising new concerns about the company’s best-selling commercial aircraft.
The National Transportation Safety Board (NTSB) and the Federal Aviation Administration (FAA) are conducting separate investigations into that incident.
One June 13, the head of the FAA told a Senate committee the agency was “too hands off” in its oversight of Boeing before the January incident.
Tuesday’s hearing comes as the Justice Department is considering whether to prosecute Boeing for violating terms of a settlement in connection with two fatal 737 Max crashes in 2018 and 2019 that killed 346 people.
Biden administration announces protection for undocumented spouses of US citizens
President Joe Biden takes executive action to protect hundreds of thousands of undocumented spouses of U.S. citizens. And from wildfires to tropical storms to extreme heat, much of the country is under alert for severe weather. These stories and more highlight The Morning Rundown for Tuesday, June 18, 2024.
Biden administration announces protection for undocumented spouses of U.S. citizens
The Biden administration has announced a new immigration policy that will shield undocumented spouses of U.S. citizens from being deported. The executive action will cover approximately 500,000 immigrants living in America for at least 10 years.
Under the program, known as “Parole in Place,” those whose applications are approved by the Department of Homeland Security will be given three years to apply for permanent residency in the U.S. The undocumented spouses would be given work permits, help to gain access to a green card and provided a path to citizenship.
“These actions will promote family unity and strengthen our economy, providing a significant benefit to the country and helping U.S. citizens and their noncitizen family members stay together,” the White House said in a statement.
President Joe Biden is expected to make an announcement on the policy at the White House Tuesday, June 18, as he marks the 12th anniversary of the Deferred Action for Childhood Arrivals (DACA) program which protects undocumented immigrants who came to America as children from deportation.
The new policy announcement is already being met with criticism from some Republicans. Sen. John Cornyn, R-Texas, wrote on X that it is “incentivizing more illegal immigration.”
The Biden administration also announced plans to make it easier for those immigrants, commonly known as Dreamers, who have earned a college degree and been offered a job to receive work visas.
These are the latest moves by President Biden on immigration as he seeks reelection. Earlier in June, the president issued an executive order limiting access to asylum seekers who cross the border illegally when the number of encounters reaches a certain point. That policy has already been challenged, with the American Civil Liberties Union (ACLU) suing the administration.
Vladimir Putin to visit North Korea for summit with Kim Jong Un
For the first time in 24 years, Russian President Vladimir Putin will be visiting North Korean leader Kim Jong Un as he looks to strengthen ties with the country. Putin will be spending two days in North Korea, where he will meet with Kim for a summit following their talks in Russia in September.
Prior to his visit, Putin wrote a letter that was published in a North Korean state newspaper where he said he appreciates North Korea’s support in its war with Ukraine.
Both the U.S. and South Korea have accused North Korea of providing Russia with military equipment — an act that would violate sanctions by the United Nations Security Council. North Korea and Russia have denied the accusations.
Speaking to reporters on Monday, June 17, White House National Security Council Spokesman John Kirby said the U.S. is keeping an eye on the growing relationship between Putin and North Korea.
“No surprise that [Putin] went to North Korea after his so-called election, a real nailbiter that was,” Kirby quipped to a reporter. “He was going to go on a little bit of a charm offensive here and that’s what he appears to be doing. We’re not concerned about the trip. What we are concerned about is the deepening relationship between these two countries, not just because of the impacts it’s going to have on the Ukrainian people — because we know North Korean ballistic missiles are still being used to hit Ukrainian targets — but because there could be some reciprocity here that could affect security on the Korean Peninsula.”
Additionally, in the letter published in the North Korean paper, Putin said Russia and the North will work together on trade and payment systems that are “not controlled by the West.”
Heat, wildfires, tropical storm threaten U.S. coast to coast
From extreme heat to wildfires to drenching downpours, the U.S. is facing severe weather threats coast to coast. The sweltering heat that’s been scorching the west is now heading to the northeast, putting millions of Americans at risk as temperatures reach up to triple digits.
The National Weather Service warned a looming heat dome could bring temperatures to record-breaking highs well into the following week.
Meanwhile, two major wildfires are burning in the west. Thousands of residents in the southern New Mexico village of Ruidoso were ordered to evacuate their homes Monday, June 17, without taking time to pack anything as the flames quickly approached.
The fire had grown to at least two square miles and burned more than 5,000 acres since it started Monday.
Firefighters are also battling widespread flames in southern California. What’s been dubbed the “Post Fire” has now spread to more than 15,000 acres in Los Angeles County. That fire, which started Saturday, June 15, was 20% contained as of fire officials’ last report Monday night.
Authorities said more than 1,100 firefighters, including air tankers and helicopter crews, are battling the fire from the ground and sky.
In the nation’s southeast, the first tropical storm watch of the 2024 Atlantic hurricane season is in effect for the stretch of coast from southern Texas to northeastern Mexico as a broad area of thunderstorms develops in the Gulf of Mexico. It’s forecast to turn into the first named storm of the season.
Boeing CEO to testify before Senate committee
Boeing is back in the hot seat on Capitol Hill Tuesday, June 18, as the company’s CEO is set to testify before Congress. David Calhoun is scheduled to appear before the Senate Investigations Subcommittee about the company’s latest plan to fix its manufacturing problems.
This will mark the first appearance of a high-ranking Boeing official before Congress since a panel blew out of a 737 Max during an Alaska Airlines flight in January, raising new concerns about the company’s best-selling commercial aircraft.
The National Transportation Safety Board (NTSB) and the Federal Aviation Administration (FAA) are conducting separate investigations into that incident.
Just last week, the head of the FAA told a Senate committee the agency was “too hands off” in its oversight of Boeing before the January incident.
Tuesday’s hearing comes as the Justice Department is considering whether to prosecute Boeing for violating terms of a settlement in connection with two fatal 737 Max crashes in 2018 and 2019 that killed 346 people.
McDonald’s ending its AI drive-thru test with IBM
You will no longer be able to use artificial intelligence to order your Big Mac — at least for now. McDonald’s announced it is ending its AI drive-through test run at more than 100 of its restaurants.
The fast food chain had partnered with IBM to create its so-called Automated Order Taker, which involves voice-activated ordering that uses AI to expedite the customer experience. However, reports said customers complained the chatbot got orders wrong and the tech had trouble interpreting accents.
McDonald’s said it will be looking to explore voice ordering solutions “more broadly” in the future.
The AI drive-thrus are set to be shut off by the end of July.
Boston Celtics win record 18th NBA Championship
For a record 18th time, the Boston Celtics are NBA champions. Powered by stars Jayson Tatum and Jaylen Brown, the Celtics defeated the Dallas Mavericks 106-88 in game five Monday, June 17, to clinch the franchise’s 18th championship.
Boeing faces potential prosecution over 737 Max crashes
The U.S. Justice Department has found that Boeing violated a settlement that allowed the company to avoid criminal prosecution following two deadly crashes involving its 737 MAX aircraft in 2018 and 2019. Boeing failed to implement changes to prevent violations of federal anti-fraud laws, a condition of the 2021 settlement.
“The government has determined that Boeing breached its obligations” under the agreement it reached with the Justice Department in early 2021, “by failing to design, implement and enforce a compliance and ethics program to prevent and detect violations of the U.S. fraud laws,” prosecutors wrote in a letter to Federal District Judge Reed O’Connor in Texas.
This determination means that Boeing could face prosecution for any federal criminal violation known to the United States, including the fraud charge it sought to avoid through the $2.5 billion settlement in 2021.
“We believe that we have honored the terms of that agreement, and look forward to the opportunity to respond to the Department on this issue,” spokeswoman Jessica Kowal said in a statement.
Biden administration plans $1 billion weapons deal with Israel
The U.S. is preparing to send $1 billion in new weapons to Israel. And there are new details about the deadly crash in Florida that killed eight migrant farmworkers. These stories and more highlight The Morning Rundown for Wednesday, May 15, 2024.
Biden administration plans $1 billion weapons deal with Israel
The Biden administration intends to send over $1 billion in new weapons to Israel, notifying Congress committees of the planned deal on Tuesday, May 14. This decision follows last week’s announcement that the administration paused a shipment of bombs to Israel due to concerns about a major operation in the Gaza border city of Rafah.
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U.S. officials indicated that the proposed package includes approximately $700 million for tank ammunition, $500 million for tactical vehicles and $60 million for mortar rounds.
While the House Foreign Affairs and Senate Foreign Relations Committees have been alerted about this potential arms transfer, Congress still awaits official notification.
Despite the pause in sending 2,000-pound bombs to Israel, the administration emphasizes its commitment to supporting Israel’s right to defend itself against threats in the region. National Security Advisor Jake Sullivan conveyed this message during a press briefing on Monday, May 13.
“The United States has sent a massive amount of military assistance to Israel to defend itself against all threats, including Hamas, Hezbollah and Iran and its other proxies,” Sullivan said. “We are continuing to send military assistance, and we will ensure that Israel receives the full amount provided in the supplemental. We have paused a shipment of 2,000-pound bombs because we do not believe they should be dropped in densely populated cities. We are talking to the Israeli government about this.”
Sullivan added that the president’s commitment to Israel is ironclad, noting that “ironclad” doesn’t imply an absence of disagreements.
Trump’s legal team begins cross-examination of Michael Cohen
Former President Donald Trump’s legal team began its cross-examination of Michael Cohen during day 17 of the former president’s criminal trial in New York on Tuesday. The defense suggested that Cohen has profited from Trump’s name after releasing two books, earning him at least $3.4 million.
Trump’s one-time lawyer was asked if he was “obsessed” with the former president. Cohen responded, “I don’t know that I would characterize it as obsessed. I admired him tremendously.”
“At the time, I was knee-deep into the cult of Donald Trump,” he replied.
Trump’s lawyer asked Cohen if he wants to see Trump convicted in this case. Cohen answered, “Sure.”
Prosecutors have indicated that Cohen is their last witness as they seek to prove that Trump falsified business records. Trump has pleaded not guilty to all charges.
Trump’s legal team plans to conclude the cross-examination on Thursday when the trial resumes.
TikTok users sue federal government over law that could ban app
The eight users, collectively boasting millions of followers, argue that the law signed by President Biden violates their First Amendment rights. They contend that it stifles a communication medium integral to American life, hindering their content creation and viewing experiences.
TikTok and parent company ByteDance have also submitted their own petition, claiming that the law infringes on First Amendment rights.
Part of a foreign aid package, the law mandates that ByteDance divest its TikTok stake within 270 days. Noncompliance would sever TikTok’s access to mobile app stores and web-hosting providers, impacting its estimated 170 million U.S. users.
National security concerns and Chinese government influence prompted this legislation.
Driver charged in DUI crash that killed 8 migrant farmworkers
Approximately 40 others sustained injuries, with eight individuals listed in critical condition. Howard himself was also injured in the collision.
The workers were reportedly from Mexico and held permits to work in Florida. The bus was enroute to a watermelon farm in the area.
Boeing faces potential prosecution over 737 Max crashes
The U.S. Justice Department has found that Boeing violated a settlement that allowed the company to avoid criminal prosecution following two deadly crashes involving its 737 MAX aircraft in 2018 and 2019.
Boeing failed to implement changes to prevent violations of federal anti-fraud laws, a condition of the 2021 settlement. This determination means that Boeing could face prosecution for any federal criminal violation known to the United States, including the fraud charge it sought to avoid through the $2.5 billion settlement in 2021.
Miniature poodle wins Westminster Kennel Club Dog Show
There’s a new top dog in town as a miniature poodle took home Best in Show at the 148th Annual Westminster Kennel Club Dog Show in New York on Tuesday, May 14. Sage emerged victorious, surpassing a field of over 2,500 dogs. The competition narrowed down to seven group champions vying for the coveted title.
This marks the 11th time that a poodle has claimed the top prize. Notably, in 2002, another Miniature Poodle named Spice — Sage’s great-grandmother — also secured the Best in Show honor.