On September 19, 2024, striking Boeing workers held a rally at the Boeing Portland plant in Portland, Oregon.
Jordan Gale | AFP | Getty Images
boeing company On Monday, the company raised its contract offer and said it was the “best and final” offer for its more than 30,000 mechanics as their strike has halted much of the aerospace giant’s aircraft production and has Entering the second week.
The union criticized the proposal, saying Boeing had not negotiated on it and calling it an attempt to bypass the union.
Boeing’s new proposal would increase overall pay by 30% over four years, up from the 25% previously proposed. It also doubled approval bonuses to $6,000, reinstated annual machinist bonuses and increased the company’s 401(k) match.
The International Association of Machinists and Aerospace Workers District 751 workers union said the new proposal “was presented to us without any discussion.”
Boeing said the offer is subject to approval by 11:59 p.m. Pacific time on Friday. But the union said the time frame did not give it enough time to provide details to members or “ensure the security of all polling locations.”
The company “declines to hold further discussions; therefore, we will not vote on the 27th,” the statement said.
However, it said it would survey members about Boeing’s new offer.
“We will collect your feedback to determine whether this offer meets your requirements,” it said.
Boeing did not immediately respond to messages from the union.
The new proposal is Boeing’s latest attempt to end a costly strike, the union’s first since 2008, since new CEO Kelly Ortberg reached an agreement Pressure is mounting for a deal.
Bank of America analyst Ron Epstein estimated the strike was costing Boeing $50 million a day, and ratings agencies said the company risked being downgraded the longer the strike lasted.
In the early days of the strike, Boeing said it began furloughing non-union workers, including managers, and implemented other cost-cutting measures such as a hiring freeze, reduced travel and the elimination of first- and business-class flights for employees Air tickets.
Both Boeing and the union said they were disappointed with last week’s negotiations.
Workers hold picket signs outside a Boeing Co. manufacturing plant during a strike on Friday, Sept. 13, 2024, in Everett, Washington, U.S.
M. Scott Brower | Bloomberg | Getty Images
The strike comes after workers voted 94.6% against proposals previously approved by the union.
Machinists on the picket line in Renton, Washington, told CNBC last week that they turned down the first contract offering more money because they wanted their wages to keep pace with the steep rise in the cost of living in the Seattle area.
Some workers said in interviews that they were prepared for a prolonged strike and had started taking on side jobs such as delivering food or working in warehouses.
