The beleaguered aircraft manufacturer Boeing has offered 33,000 workers who build airplanes in the Portland and Seattle area a pay rise of 30%, along with a ratification bonus of $6,000 in a ‘best and final’ offer to end a crippling strike that has brought airplane production lines to a standstill.
As the strike entered its second week, Boeing told the workers (who are officially known as machinists) that it had “heard your feedback” and made “significant improvements to provide more money in key areas.”
Boeing has increased the headline pay rise from 25% to 30% over the life of the four-year contract and doubled the ratification bonus from $3,000 to $6,000. An annual bonus that had been cut from the original tentative agreement has also been reinstated.
Along with improvements to 401(k) plans, Boeing says that all other elements of the original tentative agreement remain intact. That means that Boeing will still commit to building its next airplane in the Puget Sound area.
The IAM 751 union, which represents Boeing’s machinists in Puget Sound, called its members out on strike on September 13 after workers voted to reject a tentative agreement 94.6% and 96% voted overwhelmingly in favor of a strike.
In response to the strikes, Boeing has brought in sweeping cost-cutting measures which will include furloughing tens of thousands US-based employees.
The furlough plans will include senior managers and executives, with employees set to be furloughed for one week every four weeks unless the industrial strife is quickly resolved.
Last week, Boeing’s vice president and chief financial officer, Brian West, laid out how the company would go into austerity mode, with Boeing set to cut back all non-essential spending in order to save the cash-strapped business much-needed money during the length of the strike.
Boeing has told senior executives that they are no longer entitled to First or Business Class travel, and employees must forego business travel and instead rely on virtual meetings as the walkout drags on.
West also said Boeing would suspend advertising and marketing spending, halt charitable donations and withdraw from all future airshows and special events until it can get its finances in order.
Boeing CEO Kelly Ortberg told employees in a recent memo that the company was “committed to resetting our relationship” with machinists in Puget Sound.
The IAM 751 union is yet to respond to Boeing’s new offer.
Don’t take this offer. Get your Union back & Your Pension. They will tax that Bonus. No enough for all that you do.