SEATTLE, WA – Boeing presented a new offer to the striking machinists, hoping to bring an end to the strike that began on September 13. Despite offering bigger raises and larger bonuses in their “best and final offer,” the union representing the 33,000 striking workers was not satisfied with the proposal. The union has stated that there will be no ratification vote before Boeing’s deadline at the end of the week.
According to Boeing, the new offer includes a 30% pay raise over four years, an increase from the initial proposal of 25%. However, the union had originally demanded a 40% raise over three years. The company’s latest offer also includes upfront pay raises of 12% with three annual raises of 6% each, as well as doubling the size of ratification bonuses to $6,000.
Both Boeing and the union are at a standstill, with Boeing urging the union to ratify the contract by late Friday night to end the strike, while the union insists that the new offer does not address their concerns. The company’s decision to introduce rolling furloughs for non-unionized employees last week indicates the financial strain the strike is causing.
Boeing’s offer also does not include a reinstatement of the traditional pension plan that was eliminated a decade ago, a key point of contention for the striking workers. The union is now surveying its members about the new offer, indicating that a resolution may not be reached before the deadline set by Boeing.
The strike has already started impacting Boeing’s cash flow, as production of some of its best-selling planes has been halted. The company is now implementing cost-saving measures, such as requiring managers and nonunion employees to take unpaid time off every four weeks, a hiring freeze, reduced business travel, and decreased spending on suppliers, to mitigate the financial impact of the strike.