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Day: September 14, 2024
(SEATTLE) — Blue-collar workers from Boeing walked picket lines in the Pacific Northwest instead of building airplanes on Friday after they overwhelmingly rejected a proposed contract that would have raised their wages by 25% over four years.
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The strike by 33,000 machinists will not disrupt airline flights anytime soon, but it is expected to shut down production of Boeing’s best-selling jetliners, marking yet another setback for a company already dealing with billions of dollars in financial losses and a damaged reputation.
The company said it was taking steps to conserve cash while its CEO looks for ways to come up with a contract that the unionized factory workers will accept.
Late Friday, the Federal Mediation and Conciliation Service said it would convene new talks early next week.
“FMCS has been in contact with both IAM and Boeing to support their return to the negotiation table and commends the parties on their willingness to meet and work towards a mutually acceptable resolution,” the agency said in a statement.
Boeing stock fell 3.7% Friday, bringing its decline for the year to nearly 40%.
The strike started soon after a regional branch of the International Association of Machinists and Aerospace Workers reported that in a Thursday vote, 94.6% of participating members rejected a contract offer that the union’s own bargaining committee had endorsed, and 96% voted to strike.
Shortly after midnight, striking workers stood outside the Boeing factory in Renton, Washington, with signs reading, “Have you seen the damn housing prices?” Car horns honked and a boom box played songs including Twisted Sister’s “We’re Not Gonna Take It” and Taylor Swift’s “Look What You Made Me Do.”
Many of the workers who spoke to reporters said they considered the wage offer inadequate given how much the cost of living has increase in the Pacific Northwest. John Olson said his pay had increased just 2% during his six years at Boeing.
“The last contract we negotiated was 16 years ago, and the company is basing the wage increases off of wages from 16 years ago,” the 45-year-old toolmaker said. “They don’t even keep up with the cost of inflation.”
Others said they were unhappy about the company’s decision to change the criteria used to calculate annual bonuses.
The machinists make $75,608 per year on average, not counting overtime, and that would have risen to $106,350 by the end of the proposed four-year contract, according to Boeing.
Under the rejected contract, workers would have received $3,000 lump sum payments and a reduced share of health care costs in addition to pay raises. Boeing also met a key union demand by promising to build its next new plane in Washington state.
However, the offer fell short of the union’s initial demand for pay raises of 40% over three years. The union also wanted to restore traditional pensions that were axed a decade ago but settled for an increase in new Boeing contributions to employee 401(k) retirement accounts of up to $4,160 per worker.
The head of the union local, IAM District 751 President Jon Holden, said the union would survey members to find out which issues they want to stress when negotiations resume. Boeing responded to the strike announcement by saying it was “ready to get back to the table to reach a new agreement.”
“The message was clear that the tentative agreement we reached with IAM leadership was not acceptable to the members. We remain committed to resetting our relationship with our employees and the union,” the company said in a statement.
Boeing Chief Financial Officer Brian West, speaking Friday at an investor conference in California, said the company was disappointed that it had a deal with union leadership, only to see it rejected by rank-and-file workers.
During the strike, Boeing will lose an important source of cash: Airlines pay most of the purchase price when they take delivery of a new plane. West said Boeing — which has about $60 billion in total debt — is now looking at ways to conserve cash. He declined to estimate the financial impact of the strike, saying it would depend on how long the walkout lasts.
Before the strike, new CEO Kelly Ortberg gathered feedback from workers during visits to factory floors, and he “is already at work to get an agreement that meets and addresses their concerns,” West said.
White House press secretary Karine Jean-Pierre said Biden administration officials have contacted Boeing and the union.
“We believe that they need to negotiate in good faith and work towards an agreement that gives employees benefits that they deserve. It would make the company stronger as well,” she said.
Very little has gone right for Boeing this year, from a panel blowing out and leaving a gaping hole in one of its passenger jets in January to NASA leaving two astronauts in space rather sending them home on a problem-plagued Boeing spacecraft.
Read More: Is There a Future for Boeing’s Starliner After Failed Mission?
The striking machinists assemble the 737 Max, Boeing’s best-selling airliner, along with the 777 jet and the 767 cargo plane. The walkout likely will not stop production of Boeing 787 Dreamliners, which are built by nonunion workers in South Carolina.
The strike is another challenge for Ortberg, who just six weeks ago was given the job of turning around a company that has lost more than $25 billion in the last six years and fallen behind European rival Airbus.
Ortberg made a last-ditch effort to salvage a deal that had unanimous backing from the union’s negotiators. He told machinists Wednesday that “no one wins” in a walkout and a strike would put Boeing’s recovery in jeopardy and raise more doubt about the company in the eyes of its airline customers.
“For Boeing, it is no secret that our business is in a difficult period, in part due to our own mistakes in the past,” he said. “Working together, I know that we can get back on track, but a strike would put our shared recovery in jeopardy, further eroding trust with our customers and hurting our ability to determine our future together.”
Ortberg faced a difficult position, according to union leader Holden, because machinists were bitter about stagnant wages and concessions they have made since 2008 on pensions and health care to prevent the company from moving jobs elsewhere.
“This is about respect, this is about the past, and this is about fighting for our future,” Holden said in announcing the strike.
The suspension of airplane production could prove costly for beleaguered Boeing, depending on how long it runs. The last Boeing strike, in 2008, lasted eight weeks and cost the company about $100 million daily in deferred revenue. A 1995 strike lasted 10 weeks.
Before the tentative agreement was announced Sunday, Jefferies aerospace analyst Sheila Kahyaoglu estimated a strike would cost the company about $3 billion based on the 2008 strike plus inflation and current airplane-production rates.
A.J. Jones, a quality inspector who has been at Boeing for 10 years, was among the workers picketing on a corner near Boeing’s Renton campus. He said he was glad union members had decided to hold out for more pay.
“I’m not sure how long this strike is going to take, but however long it takes, we will be here until we get a better deal,” Jones said.
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Koenig reported from Dallas. Darlene Superville in Washington, D.C., contributed to this report.
NEW YORK (AP) — Disgraced ex-movie mogul Harvey Weinstein faces mounting legal and health troubles some seven years after scores of women came forward with allegations of sexual misconduct against him, helping launch the global #MeToo movement.
On Thursday, he was indicted on additional sex crimes charges in New York ahead of a retrial this fall. The grand jury decision remains sealed until he is formally arraigned in court.
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Weinstein has maintained that any sexual activity was consensual.
Meanwhile, the 72-year-old remains hospitalized following emergency heart surgery — just the latest in an assortment of medical ailments that have cropped up while in custody.
Here’s a recap of where things stand:
New York retrial
In April, New York’s highest court overturned Weinstein’s 2020 conviction on rape and sexual assault charges, ruling that the trial judge had unfairly allowed testimony against him based on allegations from other women that were not part of the case.
A new trial was ordered and the tentative start date is Nov. 12.
One of the two accusers in that case has said she is prepared to testify against Weinstein again, but it remains to be seen if the other accuser will also take the stand once more.
Weinstein had been sentenced to 23 years in prison for that conviction.
New criminal charges
Earlier this month, prosecutors disclosed that a Manhattan grand jury had reviewed evidence of up to three additional allegations against Weinstein.
They include alleged sexual assaults at the Tribeca Grand Hotel, now known as the Roxy Hotel, and in a Lower Manhattan residential building between late 2005 and mid-2006, and an alleged sexual assault at a Tribeca hotel in May 2016.
It is unclear when Weinstein will be formally charged on those allegations, given his current health condition. The next court hearing ahead of the retrial is slated for Sept. 18.
It is also unclear how the additional allegations will factor in the retrial. Prosecutors want to include the new charges in the retrial, but Weinstein’s lawyers oppose that, saying it should be a separate case.
California conviction appealed
In 2022, Weinstein was found guilty of rape, forced oral copulation and another sexual misconduct count after a one-month trial in Los Angeles. He was sentenced to 16 years in prison.
During the trial, a woman testified that Weinstein appeared uninvited at her hotel room during the LA Italia Film Festival in 2013 and that Weinstein became sexually aggressive after she let him in.
Weinstein’s lawyers appealed the conviction in June, arguing the trial judge wrongly excluded evidence that the Italian model and actor had a sexual relationship with the film festival director at the time of the alleged attack.
UK charges dropped
Britain’s Crown Prosecution Service announced Sept. 5 that it had decided to drop two charges of indecent assault against Weinstein because there was “no longer a realistic prospect of conviction.’’
In 2022, the agency authorized London’s Metropolitan Police Service to file the charges against Weinstein over an alleged incident that occurred in London in 1996. The victim was in her 50s at the time of the announcement.
Pending civil cases
Weinstein also faces several lawsuits brought by women accusing him of sexual misconduct.
Among the latest is one from actor Julia Ormond, who starred opposite Brad Pitt in “Legends of the Fall” and Harrison Ford in “Sabrina.” She filed the lawsuit last year in New York accusing Weinstein of sexually assaulting her in 1995 and then hindering her career.
The majority of lawsuits against Weinstein were brought to a close through a 2021 settlement as part of the bankruptcy of his former film company, The Weinstein Co. The agreement included a victims’ fund of about $17 million for some 40 women who sued him.
Health problems
Weinstein’s lawyers have regularly raised concerns about his worsening health since being taken into custody following his 2020 conviction.
During his appearances in Manhattan court, he’s regularly transported in a wheelchair and his lawyers say he suffers from macular degeneration and diabetes that’s worsened due to the poor jailhouse diet.
Weinstein’s pericardiocentesis surgery last week was to drain fluid around his heart. His lawyers say his medical regimen causes him to retain water and that he must be constantly monitored to ensure the fluid buildup isn’t deadly.
A judge has granted his request to remain at Manhattan’s Bellevue Hospital indefinitely instead of being transferred back to the infirmary ward at the city’s notorious Rikers Island jail complex.
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3PM ET 09/14/2024 Newscast
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The end of Russia’s war in Ukraine could come from an unexpected direction.
Ukrainian President Volodymyr Zelenskyy said he wants Ukraine’s proposal to end the war ready to be presented to the Russian government by the end of this year.
On June 16, during the Swiss Peace Formula Summit, the Ukrainian president stated that the next and final summit with his allies should be held in “months, not years”.
This second meeting should produce a document which will be then presented to Moscow and President Vladimir Putin by the so-called “third countries” on behalf of Kyiv.
But who would those third countries be? And what is Russia’s stance on Zelenskyy’s peace formula?
‘Russia’s long-term goal is to disband Western unity’
The US-based Institute for the Study of War (ISW) said Kremlin officials are likely trying to shape international peace mediation efforts in the war in Ukraine while demonstrating Russia’s unwillingness to engage in good-faith negotiations with Kyiv.
Moscow repeatedly stated that Russia has never seriously considered the plan, calling Zelenskyy’s peace formula an “ultimatum”.
Yet, Russian Foreign Minister Sergei Lavrov attended the Russia–Gulf Cooperation Council (GCC) Joint Ministerial Meeting of Strategic Dialogue in Saudi Arabia on 9 September, likely as part of the Kremlin’s efforts to advance the creation of its envisioned “Eurasian security architecture”.
The ISW previously assessed that Moscow’s proposal of Eurasian security architecture is consistent with Russia’s long-term strategic goal of disbanding Western unity, disbanding NATO from within, and destroying the current world order.
In Saudi Arabia, Lavrov met with his counterparts from Brazil and India, countries often mentioned as those who could play an important part in ending the war in Ukraine.
Global North vs Global South?
Russia’s full-scale invasion of Ukraine in early 2022 has emphasised the division between the so-called Global North and Global South.
The Global North states—the term usually used to describe the world’s most developed nations—have all been staunch supporters of Ukraine. The US, UK, and EU have all displayed their solid commitment to weapons and equipment supplies, financial aid, and, in general, their political support for Ukraine and sanctions against Russia.
This is why they are not the leading candidates to mediate any possible talks. Not because they don’t want to or because Ukraine doesn’t want it, but because most of them are now in a complex, open conflict with Russia. Moscow has even included them on its “unfriendly countries list”.
This is why any possible mediation or passing of the peace formula paper could hypothetically be trusted with the so-called Global South.
Many of the Asian, African, Middle Eastern and Latin American states didn’t condemn Russia’s invasion of Ukraine since the first days of the all-out war, and this is what made them priorities for Zelenskyy and his diplomatic team.
For many years, these countries had been somehow pushed into Russia’s area of interest. And now their position and diplomatic weight is more significant than ever.
Who are the possible key players?
India: When Russia launched a barrage of missiles across Ukraine on 8 July and destroyed the largest children’s hospital in Kyiv, Indian Prime Minister Narendra Modi was visiting Moscow.
As the photos emerged of cancer-stricken children being evacuated and receiving their vital treatment in the dusty street among the rescue operations at Ohmatdyt in Kyiv, Moscow released pictures of Modi shaking hands with Putin.
The timing of his Moscow visit didn’t go unnoticed in Kyiv, and when Modi arrived in the Ukrainian capital a few weeks later for his historic visit, he joined Zelenskyy in commemorating hundreds of Ukrainian children who have been killed during more than two years of war.
Modi, who told Zelenskyy that the killing of children in conflict was not acceptable, said he had come to Ukraine with a message of peace. He stated his respect for the territorial integrity and sovereignty of Ukraine, but overall Modi’s peace rhetoric was largely unchanged from the message he had delivered weeks earlier in Moscow as he reiterated that the conflict can be resolved only through dialogue and diplomacy.
Middle East: specifically Saudi Arabia, Qatar and the UAE. Saudi Arabia hosted an international summit on the peace formula in August of last year.
The country has also played an important role in negotiating prisoner exchanges with Russia, allowing Ukraine to achieve a major exchange involving nearly 300 people in September 2022, including the high-profile commanding officers who defended the Azovstal plant in Mariupol.
UAE also succeeded in meditating an exchange of POW’s when Kyiv and Moscow each returned 90 prisoners of war.
Qatar mediated one of the most tragic and most complicated issues amid the full-scale invasion — the forced deportation of Ukrainian children to Russia. Russia has forcefully deported over 19,000 children from Ukraine. Fewer than 400 have been returned.
Don’t look too far
When Zelenskyy visited Italy last week for the Ambrosetti Forum, his office said Ukraine’s president planned to meet with Italian authorities and representatives of Italian businesses.
It is unclear whether he met Azerbaijan’s President Ilham Aliyev who also attended the forum in Cernobbio and delivered a speech titled “Azerbaijan’s role in the new geopolitical environment”.
The Russian invasion of Ukraine arguably made Azerbaijan more important than ever to the Western partners, as Europe needs both the country’s energy resources and its transit routes.
Aliyev said that Baku was “approached by Russia, Ukraine and European institutions in order to facilitate the continuation of the gas transit through Ukraine.”
Aliyev made a surprising statement by announcing for the first time that Azerbaijan is now getting involved in helping to look for a solution to end the war in Ukraine as his country has strong positive relations and the trust of both Ukraine and Russia.
The Azerbaijan president said, “We have certain optimism because in recent contexts with both countries, we think there is ground for a breakthrough. Probably, it may be premature for me to go into too much detail, but if it works, then we may be able to do other things in order to help put an end to this war, which is destroying the whole region.”
He also emphasised that Azerbaijan “strongly supports Ukraine’s and all countries’ territorial integrity and sovereignty,” which has been the country’s position since the beginning of the war, while in parallel, Azerbaijan continues to have strong relations with Russia.
Two weeks before Aliyev’s participation in the Ambrosetti Forum alongside Zelenskyy, he welcomed Putin in Baku.
Unimaginable peace opens the door to ending war in Ukraine
For decades, Moscow has considered Azerbaijan and Armenia to be in its sphere of influence. But this long-standing status quo was shattered when Azerbaijan retook control of the Karabakh region in a lightning offensive in September 2023 while Russia was bogged down in Ukraine, triggering a major political reshape of the region.
A traditional ally and partner of Moscow, Armenia saw the historic departure of Russian border guards from its Zvartnots Airport this summer, 32 years after their deployment began.
The Russian Foreign Ministry said the move was causing “irreparable damage” to relations between the two countries. But this damage appeared to be even more significant and evolving as Armenia blamed Russia for its defeat in Karabakh region.
A month later, Armenian PM Nikol Pashinyan announced that Yerevan had suspended its participation in the Collective Security Treaty Organisation (CSTO) — Russia’s answer to the North Atlantic Treaty Organisation, which includes Russia, Belarus, Kazakhstan, Tajikistan and Kyrgyzstan.
Instead, to Russia’s dismay, Armenia has started improving relations with the West. European Commission Vice President and EU Commissioner for Promoting the European Way of Life Margaritis Schinas visited Yerevan on 9 September as the EU and Yerevan launched a dialogue on visa liberalisation for Armenia.
On X, formerly known as Twitter, Schinas said his visit marked the “recent successes in the partnership’ and specifically mentioned ‘security support’ as one of the key aspects of it, stating that ‘The EU stands shoulder to shoulder with Armenia.”
Yerevan and Baku have been negotiating a groundbreaking and regionally stabilising peace treaty after decades of war over Karabakh region and Ukraine issued a statement in April, welcoming the agreements between the two countries on finding solutions to the interstate border.
The Ukrainian ministry stressed that the delimitation of the border between Azerbaijan and Armenia based on respect for sovereignty and territorial integrity “is a necessary condition for normalising relations between the countries and ensuring stability and security in the region.
Aliyev’s surprise announcement last week on seeking solutions and signalling an involvement in the peace negotiations as an intermediary between Russia and Ukraine, while negotiating its own peace with Armenia, would further reshape the balance of powers and stability in the whole region and beyond.
As the once unimaginable peace is now looming between Azerbaijan and Armenia, this historic moment in the Caucasus could also hold the right pieces and keys to the difficult solution for ending the war in Ukraine.
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NPR News: 09-14-2024 3PM EDT
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