Striking Boeing workers held a rally at the Boeing Portland Plant in Portland, Oregon on September 19, 2024.
Jordan Gayle | AFP | Getty Images
Boeing The aerospace giant on Monday upped its contract terms, announcing what it called a “best and final” offer for more than 30,000 machinists as a strike that has halted much of the company’s aircraft production enters its second week.
The union criticized the proposal for not negotiating with Boeing and called it an attempt to bypass the union.
Boeing’s new proposal would raise prevailing wages by 30 percent over four years, up from the 25 percent previously proposed, and would also double recognition bonuses to $6,000, reinstate annual bonuses for machinists and increase the company’s 401(k) contributions.
The labor union, International Union of Machinists and Aerospace Workers Local 751, said the new proposal was “thrown at us without any discussion.”
Boeing said the proposal is contingent on approval by 11:59 pm PST on Friday, but the union said that time frame was not enough time to present details to members or “ensure all voting locations are available.”
“Because they have refused to meet for further discussions, there will be no vote on the 27th,” the company said.
But the company said it would survey its members about Boeing’s new proposal.
“We would like to hear your views on whether this proposal meets your requirements,” the company said.
Boeing did not immediately respond to the union’s message.
The new proposal is Boeing’s latest attempt to end a costly strike by union workers, its first since 2008, and is increasing pressure on new CEO Kelly Ortberg to reach an agreement.
Bank of America analyst Ron Epstein estimates that the strike is costing Boeing $50 million a day, and ratings agencies say the longer the strike continues, the more the company’s ratings could be lowered.
Within days of the strike’s start, Boeing announced it had begun laying off non-union employees, including managers, and implemented other cost-cutting measures, including a hiring freeze, cutting travel and eliminating first- and business-class tickets for employees.
Both Boeing and the union said they were disappointed with last week’s negotiations.
Workers hold picket signs during a strike outside a Boeing manufacturing plant in Everett, Washington, USA, Friday, September 13, 2024.
M. Scott Brauer | Bloomberg | Getty Images
The strike came after 94.6 percent of workers voted against a previous proposal approved by the union.
Machinists on a picket line in Renton, Washington, told CNBC last week that they rejected the first contract that offered higher wages because they wanted wages to keep up with the soaring cost of living in the Seattle area.
In interviews, some workers said they were preparing for a long strike and had started taking on second jobs such as delivering food or doing warehouse work.
