Boeing proposes ‘final’ offer to striking workers; union rejects vote

Boeing made a "best and final" pay offer to thousands of striking workers on Monday, but its largest union declined to put it to a vote, saying the planemaker had refused to bargain over the proposal that fell short of members' demands.

The U.S. planemaker offered to reinstate a performance bonus, improve retirement benefits and double a ratification bonus to $6,000 if the workers accept the offer by Friday, according to a letter sent to International Association of Machinists and Aerospace Workers officials by the company.

Boeing is under intensifying pressure to end the strike that could cost it several billion dollars, fraying the company's already-strained finances and threatening a downgrade of its credit rating.

But IAM District 751 said it would not hold a new vote on the offer, which is contingent on being approved by Friday and was not negotiated with the union.

"Logistically we don't have the ability to set up a vote for 33,000 people in a few days like that anyway. Plus, it missed the mark on many of the things our members said were important to them," said Jon Holden, the president of IAM District 751 who is the lead negotiator on the Boeing contract.

He said the union planned to survey members on Monday evening to get their views on the latest Boeing proposal.

"We are not obligated to vote (on) their offer," Holden said in an interview with Reuters. "We may, down the road. But our hope is that we can get into some discussion so we can actually address the need of our members."

He said the Boeing proposal did not fully address priorities around retirement, wages and other issues.

Boeing said in a statement that its latest offer, which came after unsuccessful federal mediation last week, made significant improvements and addressed feedback from the union and employees.

"We first presented the offer to the union and then transparently shared the details with employees," the company said.

More than 32,000 Boeing workers in Portland and the Seattle area walked off the job on Sept. 13 in the union's first strike since 2008. The workers, who have sought 40% higher pay as well as the restoration of a performance bonus, rejected a previous offer by the company.

The union represents the workers who build Boeing's best-selling 737 MAX and other jets.

Boeing's commercial planes chief Stephanie Pope had told workers before the strike that the company had held nothing back and that its offer at that time was the best deal they would get.

"Employees knew Boeing executives could do better, and this shows the workers were right all along," IAM President Brian Bryant said in a statement.

The strike is the latest event in a tumultuous year for the company that began with a January incident in which a door panel detached from a new 737 MAX jet mid-air.

An earlier tentative deal between Boeing and the union that offered a 25% raise over four years and a commitment that a new plane would be manufactured in the Seattle area if it were launched during the four-year agreement was voted down by more than 90% of workers this month.

Boeing has frozen hiring and started furloughs for thousands of U.S. employees to reduce costs amid the strike. Boeing has planned for workers to take one week of furlough every four weeks on a rolling basis for the duration of the strike.

The extensive furloughs show that new CEO Kelly Ortberg is preparing Boeing to weather a prolonged strike that may not be easily resolved given the anger among rank-and-file workers.

North American unions have capitalized on tight labor markets to win hefty contracts at the bargaining table, with mainline pilots, auto workers and others scoring big raises in 2023.

The IAM said that 5,000 of its members in Wichita, Kansas went on strike against Cessna business jet maker Textron starting on Monday.