Third Bridge global head of analysts Peter McNally discusses how the Boeing factory workers strike is impacting business on The Big Money Show.
Boeing has raised its offer to the tens of thousands of union employees on strike at the aerospace giant, in what the company referred to as its “best and final contract offer.”
In details posted to its website, Boeing’s latest proposal to the members of the International Association of Machinists and Aerospace Workers promises a 30% general wage increase over four years, along with a $6,000 ratification bonus for workers if they agree to it by Friday.
Striking Boeing workers hold rally at the Boeing Portland Facility on September 19, 2024, in Portland, Oregon. (JORDAN GALE/AFP via Getty Images / Getty Images)
The planemaker also reinstated an annual performance bonus and lifted its 401(k) match in its latest offer as it tries to lure the 33,000 striking employees off the picket lines and back onto the job as the strike continues into its second week.
Boeing previously offered a 25% pay increase over the life of the contract, and a $3,000 ratification bonus. The unionized workers are seeking a 40% pay increase over the span of the four-year contract.
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The union did not immediately respond to FOX Business’ request for comment on Boeing’s latest offer.
A strike sign is pictured outside a Boeing factory on September 13, 2024 in Renton, Washington. The Boeing Machinists union voted overwhelmingly to reject the airplane maker’s contract offer and strike. (Stephen Brashear/Getty Images)
Boeing has frozen hiring and started furloughs for thousands of U.S. employees to reduce costs. A prolonged strike could cost several billion dollars, fraying the planemaker’s already strained finances and threatening a downgrade of its credit rating.
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The strike, Boeing’s first since 2008, is the latest event in a tumultuous year for the company that began with a January incident when a door panel detached from a new 737 MAX jet mid-air.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BA | THE BOEING CO. | 156.30 | +2.99 | +1.95% |
Boeing has planned for workers to take one week of furlough every four weeks on a rolling basis for the duration of the strike.
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The extensive furloughs show new CEO Kelly Ortberg is preparing the company to weather a prolonged strike that may not be easily resolved given the anger among rank-and-file workers who want 40% higher pay and a performance bonus restored.
Reuters contributed to this report.
