Boeing sweetened its contract wage offer and said it was its “best and final” proposal for its more than 30,000 labor. The Boeing labor who has been on strike, which has halted most of the aerospace giant’s aircraft production, entered its second week. The Boeing’s 30% wage hike offer was declined by the labor union, saying the planemaker had refused to bargain over the proposal that fell short of members’ demands.
The labor union criticized the wage offer, saying Boeing did not negotiate it and calling it an attempt at bypassing the union. The International Association of Machinists and Aerospace Workers District 751, the workers’ union, said the new offer “was thrown at us without any discussion.”
Boeing labor proposal
Boeing’s new offer would boost general wages by 30% over four years, up from a previously proposed 25%. The U.S. planemaker offered to reinstate a performance bonus, improve retirement benefits and double a ratification bonus to $6,000 if the workers accept the offer by Friday. This was as per a letter sent to International Association of Machinists and Aerospace Workers officials by the company.
Strike expensive for Boeing
Boeing is under intensifying pressure to end the strike that could cost it several billion dollars. As the strike is fraying the company’s already-strained finances and threatening a downgrade of its credit rating.
But IAM District 751 said it would not hold a new vote on the offer. This offer is contingent on being approved by Friday and was not negotiated with the union.
“Logistically we don’t have the ability to set up a vote for 33,000 people in a few days like that anyway. Plus, it missed the mark on many of the things our members said were important to them,” said Jon Holden, the president of IAM District 751 who is the lead negotiator on the Boeing contract.
He said the union planned to survey members on Monday evening to get their views on the latest Boeing proposal. He said the Boeing proposal did not fully address priorities around retirement, wages and other issues.
This is Boeing’s best offer
Boeing said in a statement that its latest offer, which came after unsuccessful federal mediation last week, made significant improvements and addressed feedback from the union and employees.
“We first presented the offer to the union and then transparently shared the details with employees,” the company said.
Boeing’s labor strike
More than 32,000 Boeing labor went on a strike on September 13 in the union’s first since 2008. The workers, who have sought 40% higher pay as well as the restoration of a performance bonus. They rejected a previous offer by the company.
The union represents the workers who build Boeing’s best-selling 737 MAX and other jets.
Tumultuous time for Boeing
The strike is the latest event in a tumultuous year for the company that began with a January incident in which a door panel detached from a new 737 MAX jet mid-air.
Boeing has frozen hiring and started furloughs for thousands of U.S. employees to reduce costs amid the strike. Boeing has planned for workers to take one week of furlough for the duration of the strike.
The extensive furloughs show that new CEO Kelly Ortberg is preparing Boeing to weather a prolonged strike. A strike that may not be easily resolved given the anger among rank-and-file workers.
Stock update
U.S. stocks rose on Monday, as the Dow Jones Industrial Average and S&P 500 eked out record closes. Extending winning streak on Wall Street. Meanwhile, share price of Boeing closed higher at $156.30 up 1.96%.
