Boeing made its final offer to its striking workers, stating that this was the “best and final” deal they were going to receive. The union behind the strike, the International Association of Machinists and Aerospace Workers District (IAM), has been leading the workers in their demand for better wages, but the previous offer that Boeing made involved a 25% hike. Now, Boeing is willing to increase wages by 30%, but the offer is still lower than the 40% rise that workers had asked for.
If Boeing’s final wage increase for the strikers is not accepted, the workers could continue to resist returning to work, which will hit the aerospace company hard if it persists for much longer.
Image: Boeing
Boeing Makes “Final Offer” to Striking Workers
Boeing and the union spent two days negotiating in the presence of a federal monitor to try and reach a deal after their initial negotiations remained inconclusive. “We presented a best and final offer that made significant improvements and addressed feedback from the union and our employees,” they said at the end of the discussions.
The central focus of the offer is the 40% hike that will be available to workers over the next 4 years. Boeing’s final offer to the striking workers also includes a $6,000 ratification bonus and an increase in the company’s 401(k) match. The new offer is contingent on the members of the union accepting it by Friday night at 11:59 p.m. PT, which gives the workers a few days to make a decision on how they want to proceed.
Boeing and the machinists’ union negotiations now hinge upon this offer, but the union claims the company did not consult them and discuss the offer. They took to X/Twitter to explain that they were blindsided by the deal, highlighting that this attempt to circumvent the negotiation team was a “huge mistake” and would damage the negotiation process.
While your Negotiating Team was still reviewing the details, Boeing took it upon itself to disrespect our entire Union by sending this offer directly to all members and the media without any prior communication from your Union. This offer was not negotiated with your Union; it was thrown at us without any discussion.
—IAM Union District 751
They do not believe they have enough time to present the details to all their members and arrange for the vote to arrive at a consensus on the offer. The union will not be voting on the 27th, but it will conduct a survey to assess how members are feeling about the new offer.
Boeing’s Offer to the Striking Union May Not Be Enough
The original tentative contract that Boeing and the union had agreed on was rejected by 94.6%. The collective refusal to accept the contract came as somewhat of a surprise as the union had appeared satisfied with the deal and had encouraged members to accept it, but they were unwilling to settle so far below their demand. Apart from the wages, workers are also set on seeing pension plans return as a part of the deal but it is very unlikely that Boeing will agree with the demand.
Over 30,000 workers decided to go on strike on September 13, refusing to return to work until a better deal was negotiated. The strike could cost the company several million dollars and there is mounting pressure for them to conclude the strike and have workers return to work.
In order to deal with the repercussions of the strike, Boeing has furloughed thousands of non-union employees. These workers are expected to take one week of furlough every four weeks on a rolling basis for as long as the strike lasts, which shows that the company is aware that it might go on for a while.
The company has also initiated a hiring freeze and reduced its sending on employee business travel and suppliers. The money-saving measures might help briefly, but Boeing may have to increase wages by more than 30% or provide alternate concessions to its workers.
