Boeing has once again raised its proposed wage increase over the next four years for about 33,000 workers in the Puget Sound region, which includes the Renton and Everett plants where the 737, 767 and 777 jets are made.
After an initial offer of just 25% made in September, the planemaker has now reached a proposal of 38%, in addition to expanded benefits such as ratification bonuses and pension contributions.
The IAM union, which represents the workers, has scheduled a vote on the proposal for next Monday, November 4.
The strike at Boeing’s facilities in Washington state has entered its eighth week, worsening the company’s already shaky finances.
“Best possible offer”
The labor negotiations marked one of the first acts of Boeing’s new CEO, Kelly Ortberg, who took office in August.
On September 8, the company’s management and the IAM announced a preliminary agreement for a 25% raise, the cutting of some benefits, and the guarantee that a new commercial jet would be built in the region.
Both considered the proposal to be the “best possible,” but it soon became clear that the company’s employees would reject the offer, which in fact happened on September 12, with more than 90% of them rejecting it.
The Renton and Everett plants were shut down the next day while the parties returned to the negotiation table, but a second offer of a 30% raise was rejected by the union, which forced Boeing to withdraw it.
After the intervention of acting Secretary of Labor Julie Sue, Boeing raised the offer to a 35% raise, but 64% of employees still rejected it. The IAM said the 38% and benefits were all it had been able to extract from the planemaker, signaling that its members’ reluctance may be nearing an end.
Amid the impasse, the company is launching a debt offering to raise more than $24 billion to support its operations in the coming years.
The new vote will take place on the eve of the U.S. presidential election, contested by Democratic Vice President Kamala Harris and Republican former President Donald Trump.
