Boeing withdraws pay raise offer to striking workers

The Street

TheStreet’s Conway Gittens brings you the biggest news of the day, including what investors are watching and why the Boeing strike won’t be over anytime soon.

Transcript

00:00I'm Conway Gittens reporting from the New York Stock Exchange here's what we're

00:03watching on the street today fresh record closing highs for the Dow and the

00:07S&P 500 on Wednesday. Investors are feeling bullish about artificial

00:11intelligence and tech in general as Nvidia did a little bit of showing off

00:16at its AI summit. Shares of the AI chip leader are trading near all-time highs.

00:21Attention turns to the economy Thursday the consumer price index for September

00:26is due meanwhile Delta Airlines will release quarterly results and Tesla

00:30will finally unveil its long-awaited robo-taxi. Sticking with corporate news

00:35talks to end the month-long strike at Boeing have broken down and are not

00:39slated to resume at this time. Boeing seemed especially frustrated with the

00:45union representing roughly 33,000 striking machinists. A Boeing executive

00:49told employees in a note quote unfortunately the union did not

00:53seriously consider our proposals. As a result Boeing has ripped up an offer it

00:58called its quote best and final that would have boosted pay by 30%. The union

01:04however is not backing down union members are holding out for a 40% raise

01:09as part of a long list of grievances. Quote they refuse to propose any wage

01:14increases vacation sick leave accrual progression ratification bonus or the

01:19401k match the union told Reuters adding quote they also would not reinstate the

01:24defined benefit pension. The strike has pushed Boeing deeper into the red it's

01:29estimated to lose 1 billion dollars a month according to S&P global ratings on

01:34top of the 60 billion dollar debt it is already carrying. With production shut

01:40down Boeing is being forced to furlough workers it is also exploring money

01:44raising efforts to remain afloat while the picket line proves to be an

01:48impenetrable force. That'll do it for your daily briefing from the New York

01:52Stock Exchange I'm Conway Gittins with the street.

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