Boeing has presented what it calls its “best and final offer” to more than 33,000 striking union machinists, but the reactions from union members have been largely negative. As the strike drags into its second week, costing the aerospace giant nearly $100 million per day, the stakes are rising both for Boeing and the International Association of Machinists and Aerospace Workers (IAM), District 751.

The offer includes a 30% wage increase over four years—up from the 25% that was previously rejected—along with a ratification bonus of $6,000, reinstatement of annual bonuses, and enhanced retirement contributions. However, the proposal fell short of the union’s demand for a 40% wage increase and the reinstatement of the traditional pension plan, which Boeing scrapped in 2014.

Tune in to Our Discussion on Boeing’s ‘Best and Final’ Offer to Striking Workers!

The union has not yet committed to a vote on the new contract, and with little sign of an imminent resolution, Boeing faces mounting financial pressures, while union members grow increasingly entrenched on the picket lines.

The Offer on the Table

Boeing’s “best and final” offer reflects a critical attempt to end a costly and protracted strike. The company’s original proposal, which included a 25% wage hike over four years, was rejected by a staggering 94.6% of union members, leading to the first strike since 2008. The current offer, which represents a slight improvement, includes a four-year wage increase of 30%, spread across an initial 12% bump followed by three annual increases of 6%. In addition, Boeing has doubled the ratification bonus from $3,000 to $6,000 and restored the Aerospace Machinists Performance Program (AMPP), which it had sought to eliminate in earlier negotiations.

We heard our IAM-represented employees and are offering bigger pay raises and more money today. This morning we presented our Best and Final Offer to IAM 751 & W24.

Learn more about the contract offer in the video below. pic.twitter.com/k1yRJEglPF

— Boeing in Washington (@BoeingWA) September 23, 2024

“Our offer reflects a genuine attempt to meet the union’s concerns while also keeping the company financially stable,” said a Boeing spokesperson. “We are committed to our workers and believe this offer is both fair and sustainable.”

Despite the enhancements, the proposal still falls short of the union’s demand for a 40% wage increase and the restoration of the pension plan. Brian Bryant, President of IAM, said, “Boeing executives have always known they could do better, and this proposal shows that the workers were right all along. However, there are still critical areas where Boeing has missed the mark.”

Union Reaction: Frustration and Defiance

For many machinists, the latest offer has failed to address their core concerns—primarily the pension and wage increases that keep pace with the rising cost of living in the Pacific Northwest.

“This is complete garbage,” said one machinist on the picket line in Everett, Washington. “They think they can throw some money at us and we’ll just take it, but they need us. If they want skilled labor, they’ll have to do better.”

Boeing’s decision not to reinstate the pension plan has been a significant sticking point. A machinist from the Renton facility noted, “We sacrificed a lot when they took away the pension in 2014. Now they expect us to accept a 401(k) match that doesn’t come close to what we used to have. That’s not going to cut it.”

The union has also expressed frustration with Boeing’s decision to bypass traditional negotiating channels by sending the offer directly to the members. “This is a non-negotiated offer from Boeing,” the union said in a statement. “They’re trying to divide our members, but it won’t work. We’re standing strong.”

Day 11 – Strike Update
September 23, 2024

Attention IAM 751 Members,

This morning, at 9 AM, Boeing notified us of what they call an "improved best and final offer." While your Negotiating Team was still reviewing the details, Boeing took it upon itself to disrespect our entire… pic.twitter.com/UMeXEjGf7c

— IAM Union District 751 (@IAM751) September 24, 2024

Financial Pressure Mounts on Both Sides

The strike, which began on September 13, has already cost Boeing nearly $1 billion, according to some estimates. The company is burning through cash at a rate of $50 million to $100 million per day, a financial strain that is likely to worsen if the strike continues. Boeing’s largest commercial plane programs, including the 737 Max, 777, and 767, have all seen production halted. Although work on the 787 continues at Boeing’s non-unionized facility in South Carolina, the strike’s impact is being felt across the company’s operations.

Breaking: @Boeing significantly boosts offer seeking to end IAM strike pic.twitter.com/IYyWm5caRb

— David Shepardson (@davidshepardson) September 23, 2024

“We’re facing significant financial challenges,” Boeing CEO Kelly Ortberg said in a memo to employees. “We’ve had to implement furloughs, freeze hiring, and make difficult decisions to preserve cash flow. This strike is costing us, and we need to resolve it quickly.”

The union, however, remains undeterred. Many machinists have turned to temporary jobs in the tight labor market to make ends meet, taking advantage of gig work and side jobs to supplement their income. “I’ve been driving for Uber and picking up warehouse shifts,” one machinist said. “We’re prepared to sit this out as long as it takes.”

What’s at Stake for Boeing?

Beyond the immediate financial hit, Boeing risks long-term damage to its reputation and credit rating. Bank of America has warned that if the strike persists, the company’s credit rating could be downgraded to junk status. “This strike is a pivotal moment for Boeing,” said Ron Epstein, an aerospace analyst. “If they can’t reach a deal soon, it will impact not just their bottom line, but also their ability to deliver planes on time, which could have a ripple effect on their relationships with airlines.”

Boeing has already implemented cost-saving measures, including temporary furloughs of non-union employees, a hiring freeze, and cuts to executive pay. Additionally, the company has halted non-essential business travel, eliminated first-class tickets for employees, and paused marketing and donations. These moves reflect the seriousness of the situation, but they also highlight the limited options Boeing has to manage its cash flow without resuming production.

The Path Forward

As the strike enters its second week, both Boeing and the union face mounting pressure to reach a resolution. Boeing has set a deadline of September 27 for the union to ratify the contract, but it remains unclear whether the membership will accept the offer or continue the strike.

“The ball is in their court,” said a Boeing executive who spoke on condition of anonymity. “We’ve put forward a fair and reasonable offer, and we’re hopeful that the union will come to the table and agree to end the strike.”

However, union leaders remain cautious. “We’re reviewing the offer carefully, and we’re going to make sure that our members have all the information they need to make an informed decision,” Bryant said.

For now, the standoff continues, with no clear end in sight. Boeing, one of the world’s largest aerospace companies, finds itself in a battle that could have profound implications for its financial future and its relationship with the workforce that builds its planes.

As one union member put it, “We’re ready to go back to work, but not until we get the contract we deserve.”