Boeing has presented a revised contract offer to more than 30,000 striking machinists, marking its "best and final" proposal as the labor action continues to stall the aerospace giant's aircraft production. Entering its second week, the strike has already disrupted Boeing's operations, and the company is pushing for a resolution with a more attractive offer that includes significant pay increases, bonuses, and other benefits.
The updated proposal boosts wage increases to 30% over four years, up from the previously offered 25%, and reinstates annual bonuses. In addition, Boeing has doubled the ratification bonus to $6,000, which workers would receive upon signing the new contract. Boeing announced these changes on Monday via its website, signaling the urgency to end the strike as soon as possible. "This is our best and final offer," the company said, emphasizing that the proposal must be ratified by the machinists' union by Friday at 11:59 p.m. PT.
However, the union representing Boeing's machinists, the International Association of Machinists and Aerospace Workers (IAM), has not yet publicly responded to the revised proposal. Boeing's efforts to resolve the impasse come after workers walked off the job in Renton, Washington, earlier this month, marking their first strike since 2008. Machinists rejected Boeing's initial contract offer, citing insufficient wage increases that didn't keep pace with the soaring cost of living in the Seattle area.
The strike is significant not only for Boeing but also for the broader U.S. labor market. With approximately 30,000 machinists on strike, the walkout has raised concerns about its potential impact on the monthly U.S. jobs report. According to analysts at Oxford Economics, the labor action could reduce the Labor Department's monthly payroll count by as many as 50,000 jobs if furloughed Boeing employees are included. "One clear downside risk is that the strike activity at Boeing could knock the employment data off course," a report from the organization stated.
The strike's timing-starting on September 12, during the payroll reference week-may mean that it won't significantly affect the September jobs report, set to be released in October. However, if the strike continues, its impact may be more pronounced in the November report. "Close to 30,000 machinists walked out on September 12, the Thursday of the reference week for September payrolls," the Oxford Economics report noted. "That means those workers will still be paid for at least part of the pay period and therefore count as employed, though average hours worked could take a hit."
The strike stems from dissatisfaction with Boeing's original offer, which included a 25% wage increase, short of the 40% raise the machinists had initially sought. As inflationary pressures continue to squeeze households across the U.S., particularly in regions like Seattle, where living costs have surged, union members have remained firm in their demands for better pay. The union, in its latest update, urged machinists to hold the picket line. "A picket line isn't just a symbol; it's a powerful way to draw attention to our cause and inform the public why we are striking," the IAM said in a Sunday statement. "When we hold the line, we show the world, the media, our neighbors, and all workers that we are willing to take action for a better contract, one we deserve."
Boeing, which is already grappling with global supply chain disruptions and post-pandemic challenges in the aerospace industry, is eager to end the strike and resume full-scale production. The company's defense, space, and commercial aircraft divisions have all been affected, with many key projects delayed. The labor action has highlighted broader tensions within the U.S. labor market, where workers across various industries are pushing for better wages and working conditions amid high inflation and economic uncertainty.
Union officials have made it clear that they will not back down easily. Many workers on the picket lines in Washington expressed frustration that Boeing's profits have surged while their pay has failed to keep pace with the rising cost of housing, healthcare, and basic necessities in the region. "We're not asking for more than what we deserve," one machinist said. "The cost of living here has skyrocketed, and we just want fair compensation."
