The US aircraft manufacturer Boeing wants to increase wages by almost a third over four years. The company described the offer as the “best and last” offer in view of the ongoing strike by thousands of employees.
In the wage dispute with striking employees, Boeing has improved its salary offer. The US aircraft manufacturer announced in a letter to employees yesterday evening that it wants to increase general wages by 30 percent over four years. Boeing was previously prepared to offer an increase of 25 percent, while the union is demanding 40 percent.
The new proposal also includes bonus payments that were actually supposed to be abolished. Among other things, the Airbus competitor wants to reintroduce a performance bonus and improve pensions if employees accept the offer by Friday. The company described the new offer as its “best and last” offer.
Union says new offer “does not go far enough”
The IAM union, however, immediately rejected the company’s latest offer as inadequate. The proposal “does not go far enough” to allay the concerns of the workforce, the leadership of the employee representative body announced late yesterday evening (local time).
“They are trying to drive a wedge between our members and weaken our solidarity,” the IAM continued to criticize, accusing Boeing of a “strategy of division.” The union also complained that the new offer was presented without renewed direct negotiations. However, it wants to consult its members on the new proposals.
The largest Boeing union, with around 33,000 employees, went on strike in mid-September. After unsuccessful negotiations, the fronts between the conflicting parties have hardened. Last week, the employees rejected the company’s old proposal for a 25 percent wage increase with a majority of around 95 percent.
Tariff dispute comes at an inopportune time for Boeing
The strike affects Boeing production around Seattle in the northwest of the USA, where the best-selling 737 model and the long-haul 777 jet are built, among others. Boeing is already behind schedule with deliveries to many airlines, especially for the 737.
The wage dispute comes at an inopportune time for the Airbus rival, as Boeing is in crisis after a series of mishaps and is struggling with high losses. After an incident in January in which part of the fuselage of a nearly new Boeing aircraft ripped off shortly after takeoff, the company is not allowed to expand production of the 737 series until further notice.
Last strike cost Boeing two billion dollars
Boeing responded to the strike with, among other things, a hiring freeze. In addition, thousands of employees were furloughed and business trips were reduced to the bare minimum.
Strikes at US companies in general and at Boeing in particular are rather rare: the Boeing union IAM last went on strike in 2008. At that time, the strike lasted 57 days and, according to analyst estimates, cost the company around two billion dollars.