Boeing has proposed a significant increase in hourly wages for striking workers, raising its offer by 30 percent in an attempt to resolve a 10-day strike that has halted production at Seattle-area plants.
New Deadline for Ratification
The aviation giant has set a deadline for workers to ratify its “best and final offer” by Friday at midnight. The International Association of Machinists and Aerospace Workers (IAM) is currently reviewing the proposal.
Background of the Strike
Approximately 33,000 IAM members from District 751 walked off the job on September 13 after overwhelmingly rejecting an earlier offer. This strike has effectively closed assembly plants for the 737 MAX and 777 aircraft. The latest wage increase improves upon an earlier offer of 25 percent, which had initially gained IAM leadership support before being decisively voted down by the workforce.
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Workers Demand More
While Boeing’s new offer of a 30 percent wage increase marks progress, workers are still pushing for a 40 percent increase. They cite over a decade of stagnant wages that have strained family budgets amid rising inflation in the region.
Enhanced Proposal Details
The revised proposal also includes the reinstatement of an annual bonus that had been previously removed, as well as a doubling of the ratification bonus to $6,000. Additionally, the company has increased its contributions to employees’ 401K plans. However, the amended offer does not restore the pension, which remains a key demand for some workers.
Leadership Commentary
Boeing CEO Kelly Ortberg stated that ending the strike is “a top priority.” The company has been engaged in mediation talks with government assistance to resolve the situation.
Union’s Response
Brian Bryant, president of the IAM international union, commented that Boeing’s latest offer “validates” the decision to strike, emphasizing that employees were right to demand better conditions. Employee Mike Corsetti noted, “it’s closer but I’m not sure it’s good enough,” expressing cautious optimism about the proposal.
Ongoing Challenges for Boeing
The strike comes at a difficult time for Boeing, which is already facing scrutiny from regulators over safety issues. Federal Aviation Administrator Mike Whitaker is scheduled to testify in two congressional hearings this week regarding the agency’s oversight of Boeing.
Market Reaction
In light of the new developments, shares of Boeing saw a two percent increase.
(INCLUDES INPUTS FROM ONLINE SOURCES)
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