2025-08-03 20:18
Union rejects Boeing's contract offer, plans strike Boeing prepared for strike, cites 40% wage growth offer Union demands contract reflecting workers' role in defense Boeing expanding St. Louis facilities for new Air Force fighter Aug 3 (Reuters) - Union members who assemble Boeing's (BA.N) , opens new tab fighter jets in the St. Louis area rejected the U.S. planemaker's latest contract offer on Sunday and will strike at midnight on Monday, the International Association of Machinists and Aerospace Workers union (IAM) said. "IAM District 837 members ... deserve a contract that reflects their skill, dedication, and the critical role they play in our nation's defense," the union's Business Representative Tom Boelling said. Sign up here. Boeing said it was ready for the action. "We are prepared for a strike and have fully implemented our contingency plan," Boeing Air Dominance vice president and general manager Dan Gillian said in an emailed statement to Reuters. "We're disappointed our employees in St. Louis rejected an offer that featured 40% average wage growth," he added. Boeing's original proposal included a 20% general wage increase over four years and a $5,000 ratification bonus, as well as more vacation time and sick leave. The union had rejected the offer, saying it was insufficient. Last week, Boeing sent a new contract offer to the union with some minor compensation changes that would benefit senior union members, according to the company. The offer also kept current overtime policies, which Boeing had proposed modifying in the last contract offer. The workers assemble Boeing's fighter jets and the MQ-25, an aerial refueling drone being developed for the U.S. Navy. Boeing's defense division is expanding manufacturing facilities in the St. Louis area for the new U.S. Air Force fighter, the F-47A, after it won the contract this year. The upcoming strike by the union, representing 3,200 employees, would be much smaller than the one Boeing was hit with last fall, when 33,000 machinists at Boeing's commercial plane division walked out for nearly two months. That strike ended with approval of a four-year contract that included a 38% wage increase. https://www.reuters.com/sustainability/sustainable-finance-reporting/boeing-st-louis-defense-workers-set-strike-monday-after-rejecting-latest-offer-2025-08-03/
2025-08-03 18:44
Aug 3 (Reuters) - U.S. railroad customer groups have demanded regulators block or put onerous conditions on the proposed merger of Union Pacific (UNP.N) , opens new tab and Norfolk Southern (NSC.N) , opens new tab, the Financial Times reported on Sunday. Seven associations of shippers have expressed concern the planned deal would significantly increase the power of the merged railroad to raise prices or reduce service standards, the report said. Sign up here. Union Pacific said it had spoken with more than 100 customers about "low cost rail options" adding they would provide all details to stakeholders in their upcoming Surface Transportation Board filing. Last month, Union Pacific said it would buy smaller rival Norfolk Southern in an $85 billion deal to create the first U.S. coast-to-coast freight rail operator and reshape the movement of goods from grains to autos across the country. The two railroads are expected to have a combined enterprise value of $250 billion and would unlock about $2.75 billion in annualized synergies, the companies said. Norfolk Southern did not immediately respond to Reuters' requests for comment. Previously, the transportation division of SMART, the International Association of Sheet Metal, Air, Rail and Transportation Workers, said it plans to oppose the merger when it comes before the Surface Transportation Board for review. Major railroad unions have long opposed consolidation, arguing such mergers threaten jobs and risk disrupting rail service. Senate Democratic leader Chuck Schumer also criticized the merger saying the deal would push "us even further down the road of dangerous consolidation and monopoly power ... This is a hostile takeover of America's infrastructure." https://www.reuters.com/sustainability/boards-policy-regulation/rail-customers-urge-regulators-block-union-pacific-norfolk-southern-deal-ft-2025-08-03/
2025-08-03 14:44
SAO PAULO, Aug 3 (Reuters) - China has approved 183 new Brazilian coffee companies to export products to the Chinese market, according to a social media post of the Chinese embassy in Brazil on Saturday. The measure, a boon to local exporters after the United States government's announcement of steep tariffs on Brazilian coffee and other products, took effect on July 30. Sign up here. The new Chinese export permits are valid for five years, according to the post. The U.S.'s 50% tariff on some Brazilian products will begin on August 6. The levy represents a challenge for commodities traders and Brazilian coffee exporters, who need to find alternatives for the roughly 8 million bags sold to U.S. coffee processors every year. China is Brazil's top trade partner overall while the U.S. is a big buyer of Brazilian beef and orange juice, among other products. In June, Brazilian coffee exports into the U.S. totaled 440,034 60-kilo bags, 7,87 times more than Brazil's sales into China of nearly 56,000 bags that month, according to trade data compiled by industry lobby Cecafe. The Brazilian ministry of agriculture and Cecafe did not have an immediate comment. China's customs authority could not be immediately reached as it was outside the business hours. Brazil supplies about a third of the U.S. coffee demand each year, a trade valued at $4.4 billion in the 12 months ended in June. https://www.reuters.com/world/china/china-welcomes-183-brazil-coffee-sellers-wake-us-tariffs-2025-08-03/
2025-08-03 13:33
Eight countries to hike September output by 547,000 bpd Oil supported by US demands for India to stop buying Russian oil OPEC+ 8 on Sept. 7 may consider returning more supply, sources say LONDON, Aug 3 (Reuters) - OPEC+ agreed on Sunday to raise oil production by 547,000 barrels per day for September, the latest in a series of accelerated output hikes to regain market share, as concerns mount over potential supply disruptions linked to Russia. The move marks a full and early reversal of OPEC+'s largest tranche of output cuts plus a separate increase in output for the United Arab Emirates amounting to about 2.5 million bpd, or about 2.4% of world demand. Sign up here. Eight OPEC+ members held a brief virtual meeting, amid increasing U.S. pressure on India to halt Russian oil purchases - part of Washington's efforts to bring Moscow to the negotiating table for a peace deal with Ukraine. President Donald Trump said he wants this by August 8. In a statement following the meeting, OPEC+ cited a healthy economy and low stocks as reasons behind its decision. Oil prices have remained elevated even as OPEC+ has raised output, with Brent crude closing near $70 a barrel on Friday, up from a 2025 low of near $58 in April, supported in part by rising seasonal demand. "Given fairly strong oil prices at around $70, it does give OPEC+ some confidence about market fundamentals," said Amrita Sen, co-founder of Energy Aspects, adding that the market structure was also indicating tight stocks. The eight countries are scheduled to meet again on Sept. 7, when they may consider reinstating another layer of output cuts totalling around 1.65 million bpd, two OPEC+ sources said following Sunday's meeting. Those cuts are currently in place until the end of next year. OPEC+ in full includes 10 non-OPEC oil producing countries, most notably Russia and Kazakhstan. The group, which pumps about half of the world's oil, had been curtailing production for several years to support oil prices. It reversed course this year in a bid to regain market share, spurred in part by calls from Trump for OPEC to ramp up production. The eight began raising output in April with a modest hike of 138,000 bpd, followed by larger-than-planned hikes of 411,000 bpd in May, June and July, 548,000 bpd in August and now 547,000 bpd for September. "So far the market has been able to absorb very well those additional barrels also due to stockpiliing activity in China," said Giovanni Staunovo of UBS. "All eyes will now shift on the Trump decision on Russia this Friday." As well as the voluntary cut of about 1.65 million bpd from the eight members, OPEC+ still has a 2-million-bpd cut across all members, which also expires at the end of 2026. "OPEC+ has passed the first test," said Jorge Leon of Rystad Energy and a former OPEC official, as it has fully reversed its largest cut without crashing prices. "But the next task will be even harder: deciding if and when to unwind the remaining 1.66 million barrels, all while navigating geopolitical tension and preserving cohesion." https://www.reuters.com/business/energy/opec-makes-another-large-oil-output-hike-market-share-push-2025-08-03/
2025-08-03 11:30
LONDON, Aug 3 (Reuters) - Eight OPEC+ countries meeting on Sunday have agreed to raise oil output in September by 548,000 barrels per day, three OPEC+ sources said while the meeting was under way. The group will hold its next meeting on September 7, one of the sources said. Sign up here. https://www.reuters.com/business/energy/opec-agrees-548000-bpd-oil-output-hike-sept-sources-say-2025-08-03/
2025-08-03 07:53
DUBAI, Aug 3 (Reuters) - Saudi chemicals company SABIC (2010.SE) , opens new tab reported another surprise quarterly loss on Sunday, after deciding to shut a cracker in Britain amid a restructuring of its business during an industry slowdown. SABIC reported a net loss of 4.07 billion riyals ($1.09 billion) for the three months to June 30, missing analysts' expectations of a profit of 504 million riyals, LSEG data showed. Sign up here. Shares declined 1.6% at the open to 53.8 riyals a piece. SABIC, 70% owned by oil major Saudi Aramco (2222.SE) , opens new tab, has posted three consecutive losses in quarterly earnings as the chemicals industry grapples with weak demand that has weighed on sales. The company attributed the latest loss mainly to a 3.78 billion riyals impairment related to the cracker closure, as well as impairment charges for its investment in Swiss speciality chemicals maker Clariant (CLN.S) , opens new tab due to its share price decline. In another filing on Sunday, the company proposed a dividend of 1.5 riyals per share for the first half of the year. SABIC shares are down almost 19% this year on the Saudi exchange. The company said last month it was studying strategic options for its National Industrial Gases Company, including an initial public offering, amid a broad review of its business. SABIC said in a statement the move was in line with its portfolio optimisation and core business focus strategy, adding that an IPO of GAS would be aimed at improving the group's "financial position and the value added for shareholders". ($1 = 3.7511 riyals) https://www.reuters.com/world/middle-east/saudi-chemical-maker-sabic-reports-another-surprise-loss-q2-2025-08-03/
