Boeing has increased its offer to the International Association of Machinists (IAM) union as the strike against the company continues into its 11th day. The new offer includes a 30% raise over the four-year contract term, with an immediate 12% raise. This is an improvement from the previous offer of 25% in overall raises and an immediate 11% raise that was rejected by union members before the strike.
Boeing doubled the signing bonus to $6,000 and enhanced its contribution to 401(k) plans to match employee contributions. However, the traditional pension plan lost by union members a decade ago was not reinstated.
The strike, the first at Boeing in 16 years, has severely impacted commercial jet production. Despite facing financial challenges, Boeing remains a significant player in US manufacturing and a crucial part of the country's air transportation system. The company is the largest exporter in the US, contributing $79 billion to the economy and supporting 1.6 million jobs directly and indirectly.
The union, with over 33,000 striking employees, rejected the new offer, stating it does not address their concerns adequately. The union criticized Boeing for announcing the offer highlights before consulting the bargaining committee and demanded direct talks or mediated discussions to resolve the strike.
Boeing defended its offer, stating it was made in good faith and addressed feedback from the union and employees. The company did not specify if or when it would return to negotiations.
Union members expressed disappointment over concessions made since the last strike in 2008, particularly the loss of pension plans. The strike's impact on Boeing's cash flow led to furloughs for non-union staff and reduced purchases from suppliers.
