Boeing Proposes 30% Wage Hike in Final Offer to Striking Workers, Union Rejects Terms

Boeing has put forward a “best and final offer” to striking machinists, proposing a 30% wage increase and larger bonuses in an attempt to resolve the ongoing strike that has halted aircraft manufacturing across the Pacific Northwest. Despite this offer, the workers’ union has deemed it insufficient and has no plans for a ratification vote before Boeing’s deadline at the end of the week.

The International Association of Machinists and Aerospace Workers (IAM) District 751 criticized Boeing for announcing the proposal to its 33,000 striking members without prior negotiations with union leaders. They noted that Boeing had not engaged in discussions since last week, when previous talks failed to yield an agreement.

“Boeing does not get to decide when or if you vote,” union leaders stated, emphasizing their stance against the company’s timeline. In contrast, Boeing expressed that significant improvements had been made in response to feedback from both the union and its employees.

Initially, Boeing had offered a 25% wage increase, which the workers rejected. The latest proposal includes a 30% raise over four years, a reinstated annual bonus averaging around 3.7% of wages, and a doubled bonus of $6,000 if the agreement is accepted. Additionally, the company plans to increase its contributions to a pension plan, which would be managed by Boeing instead of the union.

This strike, which began on September 13, marks Boeing’s first since 2008 and comes amid a challenging year for the company, including a January incident involving a detached door panel from a new 737 MAX jet during flight. The company has already begun hiring freezes and furloughs for thousands of U.S. employees to cut costs, as a prolonged strike could result in significant financial losses and threaten its credit rating. Meanwhile, machinists at Textron Aviation have also walked off the job after rejecting a 26% contract offer, and a potential strike by Longshoremen poses further risks to U.S. maritime shipping.