Boeing makes 'best and final' offer as strike disrupts production
Boeing has presented an enhanced contract offer to its over 30,000 machinists, as their strike enters its second week. This improved proposal is being described by the company as its "best and final" attempt to resolve the labor dispute that has significantly disrupted aircraft production. The labor union, however, has criticized this new offer claiming it was not a result of negotiations and accuses Boeing of trying to sidestep the union.
Boeing's revised offer includes wage increase, bonus reinstatement
Boeing's revised offer includes a 30% general wage increase over four years, up from the previously proposed 25%. Additionally, the ratification bonus has been doubled to $6,000 and an annual machinist bonus has been reinstated. The company has also increased its 401(k) match. The new proposal reintroduces an annual bonus that averaged around 3.7% of wages and was omitted from the initial agreement — a point of contention for striking machinists.
Union criticizes Boeing's approach to new offer
The International Association of Machinists and Aerospace Workers District 751, the workers' union, has criticized Boeing's approach to the new offer. The union stated that the proposal "was thrown at us without any discussion." Boeing has made this offer contingent upon ratification by Friday at 11:59 pm PT, a deadline that the union argues does not provide sufficient time for member consultation or voting logistics.
Union to survey members on Boeing's new offer
Despite refusing to vote by Boeing's set deadline, the union has announced plans to survey its members regarding the new offer. "We will gather your opinion on whether this offer meets your demands," the union stated. As of now, Boeing has not responded to this message from the union. The strike is estimated by Bank of America analyst Ron Epstein, to be costing Boeing $50 million a day.
Boeing's measures to mitigate strike impact
In response to the strike, Boeing has initiated temporary furloughs for nonunion workers and managers, and implemented cost-cutting measures such as a hiring freeze, reduced travel, and the elimination of first- and business-class air tickets for employees. The dispute has halted production of Boeing's 737 Max and other jetliners. Analyst Sheila Kahyaoglu from Jefferies estimates that this could deplete an additional $1.3 billion in cash from the company each month.
