Boeing makes 'final' 30% pay hike offer to striking workers

Boeing has raised its offer to tens of thousands of striking union employees at the aviation giant, in what the company called its “best final contract offer.”

In details posted on its website, Boeing's latest proposal to members of the International Association of Robotic and Aerospace Workers calls for a general 30% pay increase over four years, along with a $6,000 ratification bonus for workers if they approve it by Friday.

The aircraft maker also reinstated an annual performance bonus and raised its 401(k) plan matching rate in its latest bid to lure the 33,000 striking employees off the picket lines and back to work as the strike drags on into its second week.

Boeing had previously offered a 25 percent pay raise over the life of the contract and a $3,000 ratification bonus. Union workers are seeking a 40 percent pay raise over the life 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 seen outside a Boeing plant on Sept. 13, 2024, in Renton, Washington. The Boeing Machinists Union voted overwhelmingly to reject the aircraft maker's contract offer and go on strike. (Stephen Brashear/Getty Images)

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Boeing has frozen hiring and begun laying off thousands of employees in the United States in a bid to cut costs. A prolonged strike could cost billions of dollars, eroding the planemaker’s already strained finances and threatening to downgrade its credit rating.

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The strike, Boeing's first since 2008, is the latest event in a turbulent year for the company that began with an incident in January when a door panel detached from a new 737 Max jet in mid-air.

Boeing plans to give workers one week off every four weeks on a rolling basis throughout the strike.

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The extended furloughs show that new CEO Kelly Ortberg is preparing the company for a prolonged strike that may not be easily resolved given the anger among rank-and-file workers who want a 40% pay raise and the restoration of a performance bonus.

Reuters contributed to this report.