RENTON, Wash. — Boeing has presented its "best and final offer" to the machinists union in an attempt to end a strike that has already cost the company nearly half a billion dollars.
Over 33,000 Boeing machinists represented by IAM District 751 have been on strike for over a week now, halting production on many of the company's jets - including its most profitable model, the 737 Max.
Machinists were in search of a 40% raise over the contract period, reinstatement of a pension plan that the company scrapped in 2014, better healthcare options and increased job security. They voted down the initial contract offer from the company by 94%, with 96% of members then voting to strike.
The new offer falls short of some of the union's sticking points but offers more than the initial tentative agreement that had tens of thousands of members ready to walk out.
The agreement includes:
- A 30% wage increase over four years
- A ratification bonus of $6,000
- Reinstated Aerospace Machinist Performance Program bonus, replacing contribution to an IAM 401k plan
- Increased company match on Boeing 401k to 100% of the first 8% an employee contributes, plus a continued automatic 4% company contribution
- All other terms of the Sept. 8 tentative agreement - "including a firm commitment to building Boeing's next new airplane in the Puget Sound region and Portland"
Boeing said with the pay increase, the average annual machinist pay would be up from $75,608 to $111,155.
The company said the offer is contingent on a contract ratification by 11:59 p.m. on Sept. 27.
In a statement, International President of IAM Brian Bryant said the latest proposal by Boeing is being reviewed, and that some of the union's top priorities remain ensuring "respect and fair pay, recognition of the sacrifices these workers have made, along with progress on retirement security and other key issues."
"Boeing executives have always known they could do better and this proposal shows the company can do better. This news validates every step that hardworking Boeing employees have taken on the picket line thus far," Bryant said. "Employees knew Boeing executives could do better, and this shows the workers were right all along. The proposal will be analyzed to see if it’s up to the task of helping workers gain adequate ground on prior sacrifices."