Boeing
improved its contract proposal for its more than 30,000 machinists as their strike
continued for the 10th day. On Monday, the US planemaker reportedly said its offer was its “best and final” pitch to the workers.
The strike has undoubtedly snubbed Boeing’s aircraft production
, which will influence extended delivery delays for several airlines. It is estimated that the industrial action costs the manufacturer at least $50 million daily.
From $3,000 to $6,000
According to CNBC, Boeing’s latest offer includes increased pay, reinstated annual bonuses, and an enhanced bonus, among other changes. The proposal would only be given upon ratification of the contract. General wages would be boosted by 30% over a four-year period, up from a 25% boost that was previously proposed in the September 8th tentative agreement.
Photo: Thiago B Trevisan | Shutterstock
Boeing also sweetened the ratification bonus to $6,000 from $3,000 and raised its 401(k) match. The company said it would increase the match to 100% of the first eight percent that an employee contributes. Workers would additionally receive an automatic 4% of company contribution.
“They could do better”
The International Association of Machinists and Aerospace Workers (IAM), the union representing the workers, said on Monday that it is reviewing the proposal, according to CNBC. Boeing said the contract must be ratified by Friday at 23:59 PT to receive the offer. However, all other terms of the tentative agreement
proposed earlier this month remain the same.
IAM International President Brian Bryant spoke to The Washington Post about the planemaker’s latest pitch.
“This news validates every step that hardworking Boeing employees have taken on the picket line thus far. Boeing executives have always known they could do better and this proposal shows the company can do better.”
The proposal is Boeing’s last attempt to end a disruptive and costly strike that has shattered its business. It marks the first time IAM members employed by the manufacturer had imposed industrial action since 2008.
“We hope they vote it soon”
Ron Epstein, Bank of America analyst, believes Boeing is at a $50 million daily deficit as a result of the strike, according to CNBC. Additionally, ratings agencies have reportedly said that the longer the strike lasts, a downgrade at the planemaker is at risk.
“This the largest offer we’ve ever offered this union or any other union,” Boeing’s chief negotiator, Mike Fitzsimmons said in an interview with The Seattle Times. “We hope it addresses the concerns of both the union and the members, and we hope they vote it soon.”
Photo: Boeing
Both parties resumed negotiations last week as federal mediators intervened. However, after two days, there was no progress. According to The Washington Post, union officials were upset with Boeing, claiming the company was “not prepared” and “unwilling” to address issues regarding pay and pension, which have been viewed as the main components to ending the strike. The union also blamed Boeing officials for continuing to express eagerness to stop the standoff, despite initially proposing a deal that fell short of the 40% wage increase the IAM is pushing for.
Under the new offer, the average pay for the machinists would be around $11,150 annually by the end of the four-year period, up from around $75,600, according to The Washington Post.