Boeing on Monday tightened its contract offer, saying it was its “best and final” proposal for its greater than 30,000 machinists as their strike, which has halted many of the aerospace giant's aircraft production, entered its second week.
The union criticized the offer, saying Boeing had not negotiated it and calling it an try and bypass the union.
Boeing's recent offer would increase general wages by 30% over 4 years, up from the previously proposed 25%. Additionally, the ratification bonus was doubled to $6,000, an annual machinist bonus was reinstated and the corporate's 401(k) was increased.
The International Association of Machinists and Aerospace Workers District 751 union said the brand new offer was “made to us without any discussion.”
Boeing said the offer was contingent on ratification by 11:59 p.m. PT Friday, but said a day later that after the IAM it had “reached out to the union to give them more time and logistical support.” to supply as soon as they resolve to vote”. complained in regards to the lack of time. The union said Monday that Boeing “refused to meet for further discussions; therefore we will not vote on the 27th.”
However, it said it could survey members about Boeing's recent offer.
“We will seek your opinion as to whether this offer meets your requirements,” it said.
Following the union's response, Boeing said it had negotiated in good faith with the union since formal negotiations began in March.
The recent offer is Boeing's latest try and end a costly strike, the unionized labor group's first since 2008, as pressure mounts on recent CEO Kelly Ortberg to succeed in a deal.
Bank of America analyst Ron Epstein estimated the strike was costing Boeing $50 million a day, and rankings agencies said the corporate risked a downgrade the longer the strike lasted.
Boeing said it began temporarily furloughing non-union employees, including managers, within the early days of the strike, and implemented other cost-cutting measures akin to a hiring freeze, reduced travel and the elimination of first and business class airline tickets to have introduced employees.
Both Boeing and the union expressed disappointment in last week's negotiations.
“Following an unsuccessful federal mediation last week, we submitted a best and final offer that made significant improvements and addressed feedback from the union and our employees,” Boeing said in a press release Monday. “We first presented the offer to the union and then passed on the details transparently to our employees.”
The strike got here as employees voted 94.6% against the previous proposal that the union had supported.
Machinists on picket lines in Renton, Washington, told CNBC last week that they rejected the primary contract with higher wages because they wanted their wages to maintain pace with the sharp rise in the price of living within the Seattle area.
Some employees said in interviews that they’d been preparing for a protracted strike and had began taking second jobs akin to delivering food or working in warehouses.
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