Boeing union hits out over 'final' 30% pay rise offer

The union representing thousands of striking Boeing workers has criticized what the aircraft manufacturing giant said was its "best and final" pay offer that proposed a 30 per cent rise over four years according to a detailed report by BBC.

The new offer also included reinstatement of a performance bonus and better retirement benefits. Still, the International Association of Machinists and Aerospace Workers (IAM) said the offer was not negotiated with the union and that "it was thrown at us without any discussion" - a claim Boeing denies.

More than 30,000 Boeing workers went on strike earlier this month after rejecting a 25 per cent pay rise offer. Boasting of listening to its employees and their concerns, Boeing today presented its best and final offer, says the aircraft manufacturing giant through a letter.

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Double the value of a one-off signing bonus

The proposal doubles the value of a one-off signing bonus upon a new pay deal as $6,000 in return. Boeing said this offer is dependent on ratification by union members by midnight Pacific time on Friday 27 September (7 am GMT on Saturday 28 September). But IAM claims Boeing's new offer was delivered directly to union members and news media outlets without discussing it with the representatives of the union.

"This tactic is a blatant show of disrespect to you - our members - and the bargaining process," IAM said in a post on X, formerly known as Twitter.

The union said it would not conduct a vote of its membership before Boeing's deadline. Further, responding to that, Boeing told the BBC: "We have negotiated in good faith with the IAM since formal negotiations commenced in March."

"We presented the offer to the union first and then openly provided all the information to our employees," it added.

The back story of the dispute

Boeing workers voted for a strike on September 13, after rejecting a new contract deal offering a 25 per cent pay rise over four years. Boeing, makers of 737 Max and other aircraft, faces a combined union ruling down its offer in a vote meant to decide whether its rank-and-file workers do walk off the job or not.

The union had been demanding several changes to workers' packages: a 40 per cent pay raise was one of them. All but five per cent of the members of the union, which makes the 737 Max and 777 among others, voted down Boeing's initial offer of those voting, 96 percent backed strike action until they have a new agreement.

Impact of the strike on Boeing

The strike is likely to cost Boeing billions of dollars, increasing the crisis at a company that was already facing several difficulties. The impacts are already apparent across the industry and wider US economy too as Boeing has halted shipments of most parts as well as taken other cost-cutting measures. To save money, the company has already suspended the jobs of tens of thousands of staff.

It has also declared that US-based executives, managers, and employees would have to undergo one week of furlough every four weeks until the lockout lasts. The ruling government officials are acting as mediators between both parties.