Boeing has presented what it calls its “best and final offer” to the union workers currently on strike, proposing higher pay raises and bigger bonuses to end the two-week-long standoff.
Key Highlights of the Offer
Boeing’s latest offer includes pay raises totaling 30% over four years, an increase from the previous 25%. The offer also doubles the ratification bonuses to $6,000 and restores annual bonuses, which the company had sought to replace with retirement contributions.
The company said if accepted, the new deal would boost the average machinist’s annual pay from $75,608 to $111,155 by the end of the contract.
Strike Continues, Union Yet to Respond
The International Association of Machinists and Aerospace Workers, representing factory employees who assemble Boeing’s planes, has not yet commented on the offer. The strike, which has halted production of key aircraft like the 737 and 777, began after 94.6% of workers rejected Boeing’s previous offer, citing concerns over pay and pensions.
Details of the Raise and Bonuses
Boeing is offering an upfront raise of 12%, followed by three annual raises of 6%. However, the new offer does not reinstate the traditional pension plan that was removed a decade ago, a key sticking point for many workers.
Impact on Boeing’s Operations
As the strike drags on, Boeing’s ability to generate cash is being affected. The production halt has delayed the delivery of planes like the 737s, 777s, and 767s, which impacts the company’s revenue flow.
In response to the ongoing strike, Boeing has started implementing temporary furloughs for managers and non-union staff, as well as other cost-saving measures that will remain in place for the duration of the strike.