Boeing Caves: 30% Pay Raise Offered Amidst Week-Long Strike

To resolve the strike that has been going on for over a week, Boeing has made concessions to the workers, with the latest proposed pay raise exceeding the previous offer's magnitude, and pressuring the union by stating that this is the "best and final" version of the proposal.

On Monday, September 23rd, Eastern Time, Boeing announced the revised pay raise proposal, suggesting a 30% pay increase over the next four years, higher than the previously rejected proposal of 25%.

The new proposal also doubles the amount of bonuses to $6,000 and retains the annual productivity bonus.

Boeing stated that the terms announced on Monday are final and are only valid until this Friday, September 27th.

This is seen as Boeing's "ultimatum" to force the union to accept the new proposal.

Some media have pointed out that Boeing's latest proposal highlights the company's urgency in resolving the recent strike.

The new strike began on the last Friday, September 13th, involving approximately 33,000 mechanics who assemble Boeing's best-selling aircraft.

This Friday evening, Boeing's largest union, the International Association of Machinists and Aerospace Workers (IAM), will vote on whether to approve Boeing's new proposal.

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It is currently uncertain whether Boeing can end the strike with the new plan.

Some media have pointed out that the Boeing union previously demanded a 40% pay raise.

Other media have mentioned that the new proposal does not restore the traditional pension plan, which is an important point of contention, leading to 94.6% of union members rejecting the previous contract.

However, Boeing's new proposal reaffirms the commitment to manufacture the next new passenger aircraft in Seattle, which is an important decision for union leaders.

By this Friday's vote, the Boeing employee strike will have lasted for two weeks.

Boeing has been under the impact of the strike.

Financially, Boeing has started rotating vacations for non-union employees and freezing recruitment to cut costs.

The operational impact has swept across the Pacific Northwest.

Due to the strike, Boeing's 737, 777, and 767 aircraft have temporarily ceased production, but non-union employees in South Carolina, USA, continue to produce the 787 aircraft.

Sheila Kahyaoglu, an analyst at Jefferies, said that the labor dispute has halted the production of Boeing's "cash cow" 737 Max and other jetliners, and may lead to an additional cash burn of $1.3 billion per month for Boeing.

After Boeing announced the new proposal on Monday, the stock price increased in the afternoon, reaching a daily high of more than 3.3%, and finally closed up nearly 2%.

As of Monday's closing, the stock price has fallen about 40% since the beginning of this year.

In response to Boeing's new plan, IAM President Brian Bryant issued a statement saying that IAM is evaluating the latest proposal.

To reach a settlement, some of the primary tasks remain to ensure respect and fair compensation, recognize the sacrifices made by workers, and make progress on retirement security and other key issues.

IAM will analyze the new proposal to see if it can help workers receive adequate returns based on the sacrifices they have made before.