Boeing’s largest union, the International Association of Machinists and Aerospace Workers is still smarting over a 2014 deal that sacrificed pensions, locked in minimal raises, and tied the hands of activists for a decade. Union leaders will demand a 40% pay raise over three or four years, emboldened by a resurgent US labor movement, a scarcity of qualified aerospace workers, and pressure on Boeing to stabilize work in its factories. A labor deal could also be costly. Every 10% increase in machinist wages will drag down 2026 free cash flow by an estimated $260 million before price and productivity offsets, according to Sheila Kahyaoglu, an analyst with Jefferies.
- Date Posted:
- February 6, 2024
Each of the past four generations of Americans was better off than the previous one, using a post-tax, post-transfer income measure constructed annually from 1963-2022 based on the Current Population Survey Annual Social and Economic Supplement. At age 36–40, Millennials had a real median household income that was 18% higher than that of the previous generation at the same age. This rate of [post-tax and transfer] intergenerational progress was slower than that experienced by the Silent Generation (34%) and Baby Boomers (27%), but similar to that experienced by Generation X (16%). Slower progress for Generation X and Millennials is due to their stalled growth in work hours—holding work hours constant, they experienced a greater intergenerational increase in real market income than Baby Boomers. We also find that the higher educational costs incurred by younger generations is far outweighed by their lifetime income gains.