Boeing sweetens wage proposal with “best and final” offer

Boeing The company sweetened its wage offer on Monday, saying it was the “best and last” proposal for its more than 30,000 machinists as the strike that has halted much of the aerospace giant's aircraft production enters its second week.

The union criticized the offer, saying Boeing had not negotiated it and called it an attempt to bypass the union.

Boeing's new offer includes a 30 percent pay increase over four years, up from the 25 percent originally proposed, doubling the ratification bonus to $6,000, reinstating an annual bonus for machinists and increasing the company's 401(k) match.

The International Association of Machinists and Aerospace Workers District 751 union said the new offer was “presented to us without any discussion.”

Boeing said the offer was contingent on ratification by 11:59 p.m. PT Friday, but the union said that did not give it enough time to provide details to members or “secure all polling locations.”

It said that the company had refused to meet for further talks and therefore there would be no vote on the 27th.

However, it was said that it would consult its members about Boeing's new offer.

“We will seek your opinion as to whether this offer meets your requirements,” they said.

Following the union's response, Boeing said the company had been negotiating in good faith with the union since formal negotiations began in March.

The new offer is Boeing's latest attempt to end a costly strike, the first by the unionized group of workers since 2008, and is increasing pressure on new CEO Kelly Ortberg to reach an agreement.

Bank of America analyst Ron Epstein estimates that the strike is costing Boeing $50 million a day. Rating agencies warn that the longer the strike continues, the greater the risk of a downgrade for the company.

Boeing said that in the early days of the strike, it began temporarily furloughing non-union workers, including managers, and implemented other cost-cutting measures such as a hiring freeze, limited travel and the elimination of first- and business-class airline tickets for workers.

Both Boeing and the union expressed disappointment with last week's negotiations.

“After an unsuccessful mediation by the federal government last week, we submitted a best and final offer that includes significant improvements and takes into account feedback from the union and our employees,” Boeing said in a statement Monday. “We presented the offer to the union first and then shared the details transparently with our employees.”

The strike came about after workers voted against the union's previous proposal by a 94.6% majority.

Striking machinists in Renton, Washington, told CNBC last week that they rejected the first union contract offering higher wages because they wanted their wages to keep pace with the sharply increased cost of living in the Seattle area.

Some workers said in interviews that they had prepared for a long strike and had begun taking on extra jobs, such as delivering food or working in warehouses.