Workspan Daily News Bytes for Sept. 27, 2024
Workspan Daily
September 27, 2024
Key Takeaways
  • Boeing’s 30% Raise Offer May Not Be Enough to End Strike
  • Amazon Raises Pay for Hourly Warehouse Workers
  • Maine Employers Face Bigger Fines for Labor Law Violations
  • GM to Lay Off About 1,700 Workers at Kansas Plant 

Boeing’s 30% Raise Offer May Not Be Enough to End Strike 

As reported by CNN, Boeing announced Monday, Sept. 23, that it raised its offer to the International Association of Machinists (IAM) union as the strike against the company entered its second week.  

The new offer would give union members a 30% raise over the four-year life of the contract, including an immediate 12% raise, up from the 25% in overall raises and an immediate 11% raise that membership voted almost unanimously against on Sept. 12.  

The new offer also doubled a signing bonus to $6,000, and increased the money that Boeing would contribute to 401(k) plans of union members to match contributions they make themselves. However, it did not restore the traditional pension plan that union members lost 10 years ago in a previous labor agreement.  

The union expressed pessimism on passage of the new offer and on Tuesday, Sept. 24, refused to convene a vote seemingly leaving both sides at an impasse. 

 “The survey results from [Monday] were overwhelmingly clear, almost as loud as the first offer: members are not interested in the company’s latest offer,” International Association of Machinists and Aerospace Workers District 751 said in a statement posted on social media platform X. 

The strike is the first at the aircraft maker in 16 years. 

Amazon Raises Pay for Hourly Warehouse Workers 

Amazon is raising the pay of its fulfillment and transportation staff in the United States by at least $1.50 an hour and handing out free Prime memberships as benefits, according to Reuters. 

The company will spend more than $2.2 billion on the pay hikes that will take the base salaries of hourly workers to more than $22 an hour, and more than $29 an hour including benefits. The hikes will roll out starting this month, and the Prime membership will be added to the benefits package early next year. 

Amazon employs more than 800,000 full-time and contract workers in the fulfillment and transportation roles in the U.S., according to the company.

Maine Employers Face Bigger Fines for Labor Law Violations 

According to the Portland Press Herald, Maine employers will face bigger fines for violating labor laws governing minimum wage, overtime and other standards, but also will benefit from expanded opportunities to appeal penalties as part of a state rule that took effect Sept. 19. 

Under the new rule, most violations would start with a $1,000 fine that would be reduced by considering factors such as the size of the employer, repeat violations, the severity of the violation or if the fine for a violation is capped at a lower amount. 

The Maine Department of Labor said light fines and low penalty collections prompted the rule issued last year by the Bureau of Labor Standards. 

GM to Lay Off About 1,700 Workers at Kansas Plant 

As reported by Reuters, General Mothers will lay off 1,695 workers at its Fairfax Assembly plant in Kansas. The announcement was made in a Worker Adjustment and Retraining Notification notice earlier this week. 

A GM spokesperson said the first of two rounds will begin on Nov. 18, affecting 686 full-time workers temporarily and terminating 250 temporary employees. Under the second phase, to begin on Jan. 12, 2025, the company will temporarily lay off 759 full-time workers, the spokesperson confirmed. 

In August, GM also laid off more than 1,000 salaried employees worldwide across its software and service units. 

Editor’s Note: Additional Content 

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