As the strike carries on into its second week and pressure weighs heavy on the new CEO Kelly Ortberg, Boeing has tempered its contract offer and told its 30,000 or so employees that this would be the final offer.
The new offer would see the general wages increased by 30% over four years, a USD 6,000 ratification bonus, the annual machinist bonus restored, and the 401(k) contribution raised.
However, the International Association of Machinists and Aerospace Workers, District 751, denounced the offer as an attempt to bypass the union, saying the offer was “thrown at them without any discussion.”
Boeing said the offer was subject to change upon consideration by Friday. On the other hand, the union expressed that such a time frame does not allow enough time for detailed presentation to the union members, nor to “secure all voting locations.”
Ron Epstein, analyst at the Bank of America, estimated Boeing would be losing USD 50 million a day due to the ongoing strike, posing risks of the company getting downgraded if continued. Boeing has tried temporary furloughs on non-union employees, together with other measures to cut costs e.g., hiring moratorium and cancellation of first-class and business-class tickets previously issued to employees.
