Connect with us

Hi, what are you looking for?

Business Insider

Boeing sweetens offer to union as strike enters second week

Boeing on Monday sweetened its contract offer and said it was its “best and final” proposal for its more than 30,000 machinists as their strike, which has halted most of the aerospace giant’s aircraft production, entered its second week.

The new offer raised pay, reinstated annual bonuses and increased a bonus that would be given upon the contract’s ratification, among other changes, Boeing said on its website.

Boeing’s new offer would raise general wages by 30% over four years, up from a previously proposed 25%. It also doubled the ratification bonus to $6,000, reinstated an annual machinist bonus and raised the company’s 401(k) match.

The labor union, the International Association of Machinists and Aerospace Workers, didn’t immediately comment on the offer. Boeing said the offer is contingent upon ratification by Friday at 11:59 p.m. PT.

The new offer is Boeing’s latest attempt to end a costly strike, the unionized work group’s first since 2008, as pressure is mounting on new CEO Kelly Ortberg to reach a deal.

Bank of America analyst Ron Epstein estimated the strike is costing Boeing $50 million a day, and ratings agencies have said the company risks a downgrade the longer the strike lasts.

In the first few days of the strike, Boeing said it started temporarily furloughing nonunion workers including managers, and implemented other cut costs such as a hiring freeze, reduced travel and the elimination of first- and business class-air tickets for employees.

Both Boeing and the union said they were disappointed with negotiations last week.

The strike came as workers voted 94.6% against the previous proposal that the union had endorsed.

Machinists on picket lines in Renton, Washington, told CNBC last week that they rejected the first contract with higher pay because they wanted their wages to keep up with the sharp increase in the cost of living in the Seattle area. Some workers said in interviews that they have prepared for a long strike and have begun taking side jobs like delivering food or working in warehouses.

This post appeared first on NBC NEWS
Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

You May Also Like

Editor’s Choice

[#item_full_content]

Editor’s Choice

[#item_full_content]

Disclaimer: KingOfCashSecrets.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2024 KingOfCashSecrets. All Rights Reserved.