Boeing offers final contract proposal amid ongoing strike by machinists

Virginia: Boeing has issued what it calls its “best and final” contract offer to over 30,000 machinists as their strike, which has halted most of the aerospace company’s aircraft production, entered its second week. The strike, the first of its kind since 2008, has put significant pressure on Boeing to reach an agreement, with losses estimated at 50 million dollars a day.

The Boeing Company is an American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, satellites, and missiles worldwide. The company also provides leasing and product support services. Boeing is among the largest global aerospace manufacturers, it is the fourth-largest defense contractor in the world based on 2022 revenue and is the largest exporter in the United States by dollar value.

The new offer includes a 30 percent wage increase over four years, up from the previously proposed 25 percent, a doubled ratification bonus of 6,000 dollars, an annual machinist bonus, and an increased 401(k) company match. Despite these improvements, the workers' union, the International Association of Machinists and Aerospace Workers District 751 (IAM), criticised the offer for being presented without prior negotiation.

The union stated that Boeing attempted to bypass formal discussions and expressed disappointment in the proposal, declining to vote on the offer scheduled for September 27. However, IAM indicated it would survey members to gather opinions on whether the new terms meet their expectations.
In response, Boeing asserted that it had bargained in good faith with the union since negotiations began in March and aimed to resolve the strike, which has disrupted production and led to temporary furloughs and other cost-cutting measures. These include a hiring freeze, restricted travel, and the elimination of first- and business-class air tickets for employees.

Boeing's latest offer is seen as a critical step for new CEO Kelly Ortberg, as both the company and union remain under pressure to reach a deal. Both sides expressed disappointment with last week’s federal mediation, with Boeing saying it had made significant improvements to address union feedback.