Striking Boeing workers hold a demonstration at the Boeing facility in Portland on September 19, 2024, in Portland, Oregon.
Jordan Gill | AFP | Getty Images
Boeing Airbus on Monday announced an improved contract offer that it said was its “best and final” proposal for more than 30,000 of its robotic workers as their strike, which has halted most aircraft production at the aerospace giant, entered its second week.
Boeing said on its website that the new offer includes a pay increase, reinstatement of annual bonuses and an increase in the bonus that will be awarded upon contract ratification, among other changes.
The company’s new offer calls for a 30% increase in general wages over four years, up from the 25% the company had previously proposed. The company also doubled its endorsement bonus to $6,000, reinstated an annual bonus for machinists, and increased contributions to the company’s 401(k) plan.
The labor union, the International Association of Robotic and Aerospace Workers, said Monday it was reviewing the offer.
“Boeing executives have always known they can do better, and this proposal shows that the company can do better,” International Laborers Union President Brian Bryant said in a written statement.
Boeing said the offer is conditional on approval by 11:59 p.m. Pacific time on Friday.
The new offer represents Boeing's latest attempt to end the costly strike, the union's first since 2008, as pressure mounts on new CEO Kelly Ortberg to reach a deal.
Bank of America analyst Ron Epstein estimated the strike was costing Boeing $50 million a day, and credit rating agencies said the company risked a downgrade the longer the strike lasted.
In the first few days of the strike, Boeing said it had begun laying off non-union workers, including managers, and implemented other cost cuts such as a hiring freeze, limited travel, and the cancellation of first- and business-class airfare for employees.
Boeing and the unions said they were disappointed with the negotiations last week.
Workers hold picket signs outside a Boeing manufacturing facility during a strike in Everett, Washington, U.S., Friday, Sept. 13, 2024.
M. Scott Brower | Bloomberg | Getty Images
The strike came as workers voted 94.6% against the previous proposal supported by the union.
Machinists on picket lines in Renton, Washington, told CNBC last week that they rejected the first contract with a higher wage because they wanted their wages to keep pace with the sharp rise in the cost of living in the Seattle area.
Some workers said in interviews that they had prepared for a long strike and had begun taking side jobs such as delivering food or working in warehouses.
