Boeing Presents ‘Final’ Offer to Striking Workers; Union Dismisses Vote, Reports Reuters

By Allison Lampert and David Shepardson

Boeing has presented a "best and final" pay offer to thousands of striking employees, but the company’s largest union has opted not to hold a vote on the proposal, citing insufficient negotiations and unmet demands.

The aerospace manufacturer proposed reinstating a performance bonus, enhancing retirement benefits, and doubling a ratification bonus to $6,000 for workers who accept the offer by Friday. This information was outlined in a letter forwarded by Boeing to officials of the International Association of Machinists and Aerospace Workers (IAM).

Under increased pressure to resolve the strike—estimated to potentially cost the company billions and worsen its financial situation—Boeing’s offer was nonetheless dismissed. IAM District 751 indicated that it would not facilitate a vote, as the terms were not sufficiently negotiated with union representatives.

Jon Holden, president of IAM District 751, stated, "Logistically we don’t have the ability to set up a vote for 33,000 people in a few days. Additionally, it missed the mark on many important issues to our members." Holden noted that the union would be surveying members to gather opinions regarding Boeing’s latest proposal.

He emphasized the union’s commitment to addressing the core priorities of its members, including retirement and wage concerns. Boeing, in response, claimed that its recent proposal included significant enhancements and took union feedback into account.

Over 32,000 workers in Portland and the Seattle area initiated a strike on September 13, marking the first strike by the union since 2008. The workers are advocating for a 40% pay raise and the reinstatement of a performance bonus, having previously rejected another company offer.

Boeing workers manufacture various aircraft, including the popular 737 MAX. Prior to the strike, Boeing’s commercial planes chief advised employees that the previous offer was the best the company could provide, a sentiment that IAM leaders believe contradicted the company’s actions.

This strike adds to a challenging year for Boeing, which began with a mid-air incident involving a detached door panel from a 737 MAX in January. A tentative agreement offering a 25% pay raise over four years was overwhelmingly rejected by workers earlier this month.

In an effort to mitigate costs amid ongoing labor disputes, Boeing has initiated hiring freezes and furloughs for thousands of employees, with plans for rolling weekly furloughs that could extend throughout the strike. These extensive measures suggest new CEO Kelly Ortberg is preparing for an extended labor standoff.

The situation reflects a broader trend as North American labor unions have leveraged tight labor markets to secure substantial agreements in recent negotiations, with pilots and auto workers also achieving significant raises in 2023. Additionally, the IAM has reported that 5,000 members in Wichita, Kansas, have gone on strike against Cessna business jet manufacturer Textron.