Boeing has made a significant move in its negotiations with striking union machinists, announcing a “best and final offer” that includes improved pay raises and bonuses. This latest offer comes as the strike, which began on September 13 and involves approximately 33,000 machinists, continues to impact the company’s operations.
The revised terms propose a pay increase of 30% spread over four years—a leap from the previously rejected offer of 25%. Boeing’s insistence on labeling this new proposal as its final attempt indicates a strong desire to resolve the ongoing labor dispute swiftly. To manage costs during the strike, the company has already implemented rolling furloughs for non-union employees, showcasing the financial strain the strike has initiated.
With their last paychecks having been received last week, striking workers face increasing pressure to return to work, as they also risk losing their company-provided health insurance at the end of the month. The deadline for the union’s ratification vote on the new offer is set for late Friday night, just over two weeks since the strike commenced.
According to Boeing, the enhanced offer includes upfront raises of 12%, followed by three annual raises of 6% each. Additionally, ratification bonuses have been doubled to $6,000, and the offer intends to retain performance-based annual bonuses, a shift away from the previous proposal that sought to replace these bonuses with contributions to retirement funds.
Currently, machinists earn an average salary of $75,608, which could rise to approximately $111,155 by the end of this new contract, underlining Boeing’s intention to attract their workforce back. However, it’s important to note that the proposal does not reinstate a traditional pension plan that Boeing eliminated nearly a decade ago, a factor that was significant in the union’s previous rejection of the company’s offer.
Boeing has reiterated its commitment to potentially building its next major airplane in the Seattle region, contingent on the project’s initiation in the next four years, a demand that holds weight for union leaders.
As the strike progresses, Boeing’s capacity to generate revenue has already begun to wane, as the production of key aircraft models has ground to a halt. Sales revenue, which largely depends on timely aircraft deliveries, is at risk with operations suspended; however, nonunion workers are still engaged in work on the 787 models in South Carolina.
In light of these circumstances, Boeing initiated temporary furloughs for thousands of managers and staff, requiring them to take unpaid leave every four weeks, and has implemented a hiring freeze alongside restrictions on travel and supplier expenditure. These cost-saving measures are set to remain in place for the duration of the strike.
As negotiations unfold, the outcome will not only determine the immediate financial future for Boeing and its employees but will also have broader implications for labor relations within the aviation industry.