American aircraft manufacturer Boeing has presented a higher wage increase proposal to the union that has been striking for over 10 days.
According to Boeing on the 23rd (local time), the newly disclosed proposal includes a 30% wage increase over the next four years, which is higher than the previous 25% increase rate.
Additionally, the company stated that if the union accepts the proposal, it will pay a negotiation settlement bonus of $6,000, double the previous offer. The company will also reinstate the performance bonus system that was initially planned to be abolished and expand company contributions to employee pensions. The rest of the terms remain the same as the previous offer. The company described this proposal as the "best and final" and requested the union to accept it by the 27th.
The Boeing union began striking on the 13th in opposition to the company's health insurance cuts and Pacific Northwest production plans. This is the first union strike since 2008. Currently, it is estimated that more than 33,000 workers, accounting for 20% of Boeing's total 150,000 employees in the United States, are participating in the strike.
According to Anderson Economic Group, a research and consulting firm in Michigan, the strike is estimated to have caused losses of at least $571 million in the first week alone. In particular, with commercial aircraft production virtually halted, concerns about Boeing's business creditworthiness are growing.
Union President Brian Bryant said in a statement, "We are reviewing the proposal" and "We will analyze whether it aligns with the appropriate recognition of workers' sacrifices." However, local media have assessed that it is uncertain whether the union will accept this proposal. The wage increase offered by the company falls short of the 40% demand from the union leadership. Furthermore, the pension reinstatement plan demanded by the union was not included in this proposal. The New York Times (NYT) reported, "Boeing has made its 'best and final' offer to striking workers," adding, "It is uncertain whether it will satisfy the workers."
Meanwhile, Boeing's stock price closed up 1.96% compared to the previous session on the New York Stock Exchange that day. Boeing's stock price has fallen more than 40% since the beginning of the year due to passenger plane accidents and financial difficulties.
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