In response to the striking machinists, which has stopped most of the aerospace giant’s aircraft production, Boeing sweetened its contract offer on Monday and declared it to be its “best and final” offer. The strike is now in its second week.
Boeing noted on its website that among other things, the new offer increased salary, restored yearly incentives, and enhanced a bonus that would be awarded upon the contract’s ratification.
Under Boeing’s revised proposal, general pay would rise from a previously suggested 25% to 30% over the course of four years. Additionally, it increased the company’s 401(k) contribution, restored an annual machinist incentive, and quadrupled the ratification bonus to $6,000.
The International Association of Machinists and Aerospace Workers, the labor union, declined to comment on the offer right away. Boeing stated that approval of the offer is required by Friday at 11:59 p.m. PT.
A settlement is being increasingly pressured upon new CEO Kelly Ortberg to resolve the costly strike, which is the unionized work group’s first since 2008. Boeing has made this latest attempt to negotiate an agreement.
According to Ron Epstein, an analyst at Bank of America, Boeing is losing $50 million every day as a result of the strike. Ratings agencies have warned that if the strike continues, Boeing might face a downgrade.
Boeing said that in the early days of the strike, it began temporarily furloughing nonunion staff, including managers, and that it also instituted other cost-cutting measures such a hiring freeze, less employee travel, and the removal of first- and business-class airline tickets.
Boeing and the union expressed their dissatisfaction with last week’s discussions.
Workers voted 94.6% against the prior proposal, which the union had supported, leading to the walkout.
Last week, machinists in Renton, Washington, told CNBC that they turned down the first contract that offered more money because they wanted their salary to stay up with the rapidly rising cost of living in the Seattle region. In interviews, some employees said that they had started taking up side jobs like food delivery or warehouse labor in preparation for a protracted strike.
