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    Boeing Will Sell $19 Billion in Stock Amid Costly Strike

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    The aerospace company, locked in a standoff with striking workers, is seeking to shore up its balance sheet and avoid a credit rating downgrade.Boeing on Monday began to raise roughly $19 billion by selling stock, an attempt to shore up its finances as a costly and disruptive worker strike weighs on the plane maker’s balance sheet.The sale comes shortly after the aerospace giant reported a $6.1 billion loss in the last quarter and said it was cutting about 17,000 jobs. A weekslong strike by Boeing machinists is costing the company tens of millions of dollars each day, according to analyst estimates, adding to the financial strain created by long-running production and quality issues.The fund-raising aims to stave off a potential credit rating downgrade, which could make it more expensive for the company to borrow money. Boeing has about $58 billion in debt. S&P Global Ratings said this month that it was considering lowering Boeing’s credit rating to “junk” status, depending on how long the strike continues.Boeing’s shares fell about 1 percent Monday morning. The company’s stock has fallen more than 40 percent this year.Last week, Boeing’s largest union, which represents about 33,000 workers, rejected a tentative labor contract, extending a strike that began last month and has halted airplane production at crucial plants in the Seattle area. The proposed agreement did not address a frozen pension plan that workers were seeking to restore.Boeing indicated in regulatory filings this month that it planned to raise as much as $25 billion by selling stock or debt over the next three years, and the company entered into a $10 billion credit agreement with a group of banks. It described the plans as “two prudent steps to support the company’s access to liquidity.”The plane maker hasn’t reported an annual profit since 2018. Before the machinists’ strike started to weigh on the company, two fatal crashes of Boeing’s 737 Max in 2018 and 2019 cost it billions of dollars and severely damaged its reputation. Concerns about the safety of Boeing’s commercial planes resurfaced in January, when a door panel on a 737 Max 9 jet blew open during an Alaska Airlines flight.The stock sale on Monday covers only the company’s near-term needs, “without an extended strike or further production disruptions,” analysts at Wells Fargo said in a research note. More

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      Boeing Union Workers Reject Contract

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      The vote, hours after Boeing reported a $6.1 billion loss, will extend a monthlong strike at factories where the company makes its best-selling commercial plane.Boeing’s largest union rejected a tentative labor contract on Wednesday, a blow to the aerospace manufacturer and the Biden administration, which had intervened in the hopes of ending an economically damaging strike that began more than five weeks ago.The contract, the second that workers have voted down, was defeated by a wide margin, with 64 percent of those voting opposing the deal, according to the union, the International Association of Machinists and Aerospace Workers. The union represents about 33,000 workers, but it did not disclose how many voted on Wednesday.“This wasn’t enough for our members,” said Jon Holden, president of District 751 of the union, which represents the vast majority of the workers. “They’ve spoken loudly and we’re going to go back to the table.”The vote is a setback for Boeing’s new chief executive, Kelly Ortberg, who is trying to restore Boeing’s reputation and business, which he described in detail earlier on Wednesday. In remarks to workers and investors, Mr. Ortberg said Boeing needed to undergo “fundamental culture change” to stabilize the business and to improve execution.“Our leaders, from me on down, need to be closely integrated with our business and the people who are doing the design and production of our products,” he said. “We need to be on the factory floors, in the back shops and in our engineering labs. We need to know what’s going on, not only with our products, but with our people.”Mr. Ortberg delivered that message alongside the company’s quarterly financial results, which included a loss of more than $6.1 billion. This month, Boeing also announced plans to cut its work force by about 10 percent, which amounts to 17,000 jobs. Boeing also recently disclosed plans to raise as much as $25 billion by selling debt or stock over the next three years as it tries to avoid a damaging downgrade to its credit rating.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Boeing Seeks to Line Up Billions in Financing as Strike Goes On

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      The aerospace giant said it could raise as much as $25 billion in debt or equity over the next three years, including a $10 billion line of credit.Boeing on Tuesday announced steps to improve its financial position as costs mounted and a strike by its largest union entered its second month.In two regulatory filings, the company said that it could raise as much as $25 billion by selling debt or stock over the next three years and that it had entered into a $10 billion credit agreement with a group of banks, which it has not yet drawn on.“These are two prudent steps to support the company’s access to liquidity,” the company said in a statement. The banks are BofA Securities, Citibank, Goldman Sachs Lending Partners and JPMorgan Chase.The moves come days after Boeing revealed about $5 billion in new costs and announced a restructuring that included plans to cut 17,000 jobs, or 10 percent of its work force.The strike, which began a month ago, is costing the company tens of millions of dollars a day, according to various estimates. Most of the workers who walked out are involved in production of commercial airplanes, bringing much of that work to a virtual halt, though one major airplane program is manufactured at a nonunion factory in South Carolina.Talks between the company and the union representing 33,000 striking employees, the International Association of Machinists and Aerospace Workers, broke down last week, with Boeing retracting its latest contract offer and each side blaming the other for intransigence.Julie Su, the acting labor secretary, visited Seattle on Monday to meet with Boeing and the union, the union said in a statement.The strike is very likely costing Boeing about $1.3 billion in capital a month, according to calculations by Sheila Kahyaoglu, an analyst at Jefferies, the investment bank. Given those costs and its need for more debt, raising $10 billion by selling new shares would provide the company “considerable flexibility,” she added.Last week, S&P Global Ratings also said it was considering lowering Boeing’s credit rating, depending on how long the strike lasts, to junk status, a downgrade that would raise Boeing’s borrowing costs. The company’s debt totals nearly $58 billion, up from about $9 billion a decade ago.And the chief executive of one of the world’s largest airlines, Tim Clark of Emirates, said recently that Boeing could be forced to seek bankruptcy protection if it was not able to issue more shares to improve its financial position. “Unless the company is able to raise funds through a rights issue, I see an imminent investment downgrade with Chapter 11 looming on the horizon,” Mr. Clark told The Air Current, an aerospace news publication. More

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      A Storm, a Strike and War Abroad Pose Challenges for Harris

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      Scenes of striking workers, hurricane devastation in the Southeast and missiles over Israel represent a rare moment of turbulence for Kamala Harris.Vice President Kamala Harris has cast herself as a candidate of the future, but she has been yanked back by the problems of the present as the Middle East lurches toward a wider war, a longshoremen’s strike threatens to undermine the country’s economy and Americans across the Southeast struggle to recover from a deadly hurricane.The confluence of domestic and global traumas combined to knock Ms. Harris off a message that has been carefully calibrated since she took over for President Biden to showcase her as the avatar of “a new way forward,” as her slogan puts it.The rare moment of turbulence for Ms. Harris interrupts what has been mostly smooth sailing in her two months as the Democratic presidential nominee. It also captures a conundrum of the vice presidency, a prestigious if mostly ceremonial posting. So far, Ms. Harris has been able to take advantage of the trappings of the position — Air Force Two was parked behind her for one rally in Michigan — without being trapped by it.Ms. Harris, long a risk-averse politician, has tried to both claim Mr. Biden’s accomplishments as her own while defining herself as the future and the 81-year-old president as the past. She barely mentions the president’s name in her campaign speeches and makes a middle-class pitch that aims to correct for the inflation and high prices voters blame on Mr. Biden’s economic stewardship. This week’s events thrust Ms. Harris’s balancing act — of being both the No. 2 to Mr. Biden and atop the ticket in her own right — back into the spotlight.The scenes of striking workers, hurricane devastation in the Southeast and missiles over Israel are unwelcome complications to her case to keep Democrats in power. And they were the backdrop of the vice-presidential debate between Gov. Tim Walz, her running mate, and Senator JD Vance, former President Donald J. Trump’s No. 2, on Tuesday night, when the senator argued that Republicans would usher in an era of stability.The overlapping developments just as the calendar turned to October were a reminder that while Ms. Harris has framed her candidacy as a fresh start for the nation, she very much is part of the administration still in charge.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      San Francisco Symphony Chorus Goes on Strike

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      The work stoppage has forced a cancellation of the Verdi Requiem performances.Amid the San Francisco Symphony’s financial troubles, the orchestra’s chorus members on Thursday went on strike, forcing a cancellation of the upcoming performances of Verdi’s Requiem.More than 150 musicians and patrons joined the chorus on picket lines, which started Thursday evening in front of Davies Symphony Hall, just before the Verdi concert was to begin.“Management has repeatedly failed to show how targeting the Symphony’s internationally acclaimed Choristers will solve their alleged financial issues,” said Ned Hanlon, the president of the American Guild of Musical Artists, which represents the chorus union members. “We urge management to immediately return to the bargaining table and work toward a real solution that honors the work of these dedicated artists and gets everyone back to creating beautiful music.”Matthew Spivey, the orchestra’s chief executive officer, did not immediately respond to requests for comment. He recently told The New York Times that the orchestra has been “living beyond our means,” having struggled for years with deficits, a shrinking donor base and the decline of the old subscription model of season tickets.Esa-Pekka Salonen, the symphony’s music director, declined through a spokesman to comment.Despite the orchestra’s endowment fund, valued at about $315 million — one of the largest of any ensemble in the United States — the union has said that management pushed “for unsustainable and disproportionate cuts to the Chorus.” More

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      Ending the Boeing Strike Won’t Be Easy. Here’s Why.

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      The vehemence of workers over wages and other issues caught the company and union leaders off guard.When thousands of Boeing employees rejected a new labor contract, precipitating a strike that began on Friday, they were at odds not just with management but also with the leaders of their union, who backed the proposed deal.Now, any attempt to reach an agreement must take account of the demands of the rank and file of the International Association of Machinists and Aerospace Workers. What they want — significantly larger pay raises and far more lucrative retirement benefits than their leaders and Boeing agreed to — may be too much for management. But labor experts said the strength of the strike vote — 96 percent in favor — should help the union get a better deal.“Those overwhelming numbers are kind of embarrassing, certainly from a public relations standpoint for the union,” said Jake Rosenfeld, a sociologist who studies labor at Washington University in St. Louis. “But they also simultaneously present the union with leverage when it does resume negotiations.”And Boeing is in a difficult spot after a slowdown in commercial jet production — required by regulators after a panel blew out of a passenger jet fuselage in January — led to big financial losses. A long strike at Boeing’s main production base in the Seattle area would add significantly to the losses and possibly tip its credit rating into junk territory, a chilling development for a company with nearly $60 billion in debt.The federal mediation service said on Friday that the union and Boeing management would resume talks in the coming days.“We’re going to go back to the bargaining table, and bargain for what our members deserve,” Jon Holden, the president of District 751, the part of the machinists’ union that represents most of the workers on strike, said in an interview. “We’ll push this company farther than they ever thought they’d go.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Boeing Workers Go on Strike: What to Know

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      Thousands of Boeing workers in Washington State and Oregon walked off the job on Friday in the first strike at the plane maker in 16 years.Boeing is facing a strike that threatens to disrupt plane production, after workers overwhelmingly voted to reject a tentative contract their unions had reached with the company.Thousands of workers walked off the job in the Seattle and Portland, Ore., regions on Friday, a move that is likely to stall operations at factories where Boeing manufactures most of its commercial planes. While the deal their unions struck with the company on Sunday included double digit pay raises and improvements to benefits, 95 percent of workers rejected the proposed contract, opting instead to leverage a strike to push for more.Here’s what else to know about the company’s first strike since 2008:How many workers are on strike?Boeing, one of the largest exporters in the United States, employs a total of nearly 150,000 people across the country — almost half of them in Washington State — and more than 170,000 people worldwide. The contract that spurred Friday’s strike covers about a fifth of the company’s employees.A vast majority of the 33,000 workers under the contract are represented by District 751 of the International Association of Machinists and Aerospace Workers, Boeing’s largest union. Most of that union’s members work on commercial airplanes in the Seattle area. Workers in the Portland, Ore., area, who are represented by the union’s smaller District W24, are also on strike.What prompted them to walk off the job?The leaders of the unions representing the workers on strike reached a tentative deal with Boeing on Sunday that would have secured raises of 25 percent over four years, along with improvements to health care and retirement benefits. The company also committed to building its next commercial plane in the Pacific Northwest.But workers’ overwhelming rejection of that tentative contract reflects their willingness to fight for more, in large part to make up for concessions made in past talks, including the loss of pension benefits a decade ago. The unions started the talks by asking for raises of 40 percent.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Netanyahu Stands Firm on Cease-Fire Terms Amid Growing Outrage in Israel

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      In his first news conference since the bodies of six killed hostages were recovered, Prime Minister Benjamin Netanyahu refused to budge on his conditions for any truce in Gaza.Brushing aside pleas from allies and the demands of Israeli protesters for an immediate cease-fire in Gaza in exchange for the release of hostages, Prime Minister Benjamin Netanyahu of Israel on Monday vowed to maintain Israeli control along the border between Egypt and Gaza, a contentious plan that appeared to dim, if not dash, prospects for a truce.In his first news conference since the bodies of six slain hostages were recovered over the weekend, Mr. Netanyahu told reporters on Monday night that, to ensure its security, Israel needed to assert control over the Gazan side of the border with Egypt, known as the Philadelphi Corridor, calling it the lifeline of Hamas.Hamas has said Israeli control of the corridor is a nonstarter in negotiations for a truce, demanding instead a complete Israeli withdrawal from the Gaza Strip.“If we leave, there will be enormous diplomatic pressure upon us from the whole world not to return,” Mr. Netanyahu said of the corridor, as a large crowd protested near his private residence in Jerusalem on Monday night.Prime Minister Benjamin Netanyahu told reporters on Monday that to ensure its security, Israel needed to assert control over the Philadelphi Corridor, calling it the lifeline of Hamas. Ohad Zwigenberg/EPA, via ShutterstockMr. Netanyahu made the comments a day after the Israeli military announced that the six hostages had been found dead in a tunnel underneath the southern Gaza city of Rafah. The discovery devastated Israelis and spurred both the mass protests on Sunday and a widespread work stoppage by the country’s largest labor union.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Histadrut, the Labor Union Behind Israel’s Strike, Has Long History of Influence

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      The labor union that called for the strike in Israel on Monday, Histadrut, has played a key role in recent Israeli politics. Most notably, it led strikes last year that challenged Prime Minister Benjamin Netanyahu, forcing him to back off a contentious judicial plan. Histadrut, or the General Organization of Workers in Israel, was also pivotal to the founding of the State of Israel. It was set up in 1920, at a time when trade unions were a critical vector of political and economic influence in many countries.Its purpose in its early decades was both to serve the needs of workers at a time of Jewish immigration to what was then British-administered Palestine, and to lay the groundwork for the foundation of Israel as a state. It helped to establish the industrial, financial and economic institutions from which the nation emerged in 1948. The union’s leader in the early years, David Ben-Gurion, became Israel’s first prime minister.The organization, the largest of its kind in Israel, now represents about 800,000 workers from 27 separate unions, according to its website. Its chairman, Arnon Bar-David, has held the post since 2019.Mr. Bar-David, a longtime member of the union who also served as a major in the military reserves, in early 2023 joined other union chiefs, business leaders and military reservists to oppose a plan put in place by Mr. Netanyahu’s far-right government to limit the Supreme Court’s ability to strike down decisions by elected officials.Histadrut organized a major strike that — along with disquiet in the military and mass protests that destabilized the economy — contributed to one of the biggest domestic upheavals in Israel in decades. The unrest prompted Mr. Netanyahu to suspend the judicial plan.The deadly attack led by Hamas on Israel months later, and the ensuing Israeli military offensive in Gaza, moved the judicial issue to the background. But Histadrut again showed its influence by calling for the general strike on Monday, which, along with large street demonstrations the night before calling for a deal to free hostages from Gaza, amounted to the broadest expression of anti-government dissent since the war began. More