Key Takeaways
- Boeing issued a new offer to its striking union Monday afternoon, in hopes of ending the nearly two-week strike.
- However, the union said Boeing “missed the mark” with its latest proposal, and that it would be nearly impossible to organize a full vote by Boeing’s Friday deadline.
- Boeing’s “best and final” offer includes larger raises and the return of an annual bonus that was cut from the initial agreement.
Boeing’s (BA) striking union workers pushed back against the company’s latest contract offer Monday, saying Boeing “missed the mark” with its latest proposal.
Boeing, hoping to end a nearly two-week strike, said Monday that its “best and final” offer includes 30% raises over the next four years, up from 25% in the initial agreement, but still below the union’s stated goal of 40%. The new offer also includes improvements to retirement plans and brings back an annual bonus that workers were disappointed to see cut in the previous contract.
Union Says Deal Was ‘Thrown at Us Without Any Discussion’
However, the union said the offer was “thrown at us without any discussion,” and that Boeing “disrespected” the union by releasing it publicly before the union was able to discuss the details internally.
The union said its negotiating committee had no input on Monday’s offer and said it does not currently plan to hold a vote on the offer after Boeing declined requests for renewed talks. The union said that even if the offer was enough to satisfy workers, the Friday night deadline Boeing placed on the deal makes it nearly impossible to adequately inform union members and hold a vote on such short notice.
Discussions between the two sides broke down last week, with the union accusing Boeing of not taking its concerns seriously. The troubled airplane manufacturer has cut costs during the strike, pausing purchase orders for several planes and furloughing some employees, as Boeing has been in a difficult financial position after burning through billions earlier this year when it had to pause production to handle a variety of safety issues and investigations.
Boeing shares were down 0.7% at $155.27 in early trading Tuesday following the news, and have lost more than 40% of their value since the start of the year.