Third Bridge's head of global analyst Peter McNally talks to The Big Money Show about how the Boeing factory worker strike is affecting business.
Aerospace giant Boeing has raised its offer to tens of thousands of striking union employees to what the company calls its “best and final contract offer.”
Boeing's latest proposal to members of the International Union of Machinists and Aerospace Workers promises a 30 percent prevailing wage increase over four years and a $6,000 recognition bonus if workers agree by Friday, according to details posted on its website.
Striking Boeing workers held a rally at the Boeing Portland Plant in Portland, Oregon on September 19, 2024. (Jordan Gayle/AFP via Getty Images/Getty Images)
The company is also reinstating annual performance bonuses and increasing 401(k) contributions in its latest proposal in an effort to get its 33,000 striking workers off the picket lines and back to work as the strike enters its second week.
Boeing had previously offered a 25 percent wage increase over the life of the contract and a $3,000 recognition bonus. Union members are seeking a 40 percent wage increase over the four-year contract.
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The union did not immediately respond to a request for comment from FOX Business about Boeing's latest proposal.
Strike signs are displayed outside a Boeing factory in Renton, Washington, on Sept. 13, 2024. The Boeing Machinists union voted overwhelmingly to reject the aircraft maker's contract proposal and strike. (Stephen Brasher/Getty Images)
Boeing has frozen hiring and begun laying off thousands of American workers to cut costs. A prolonged strike could cost the company billions of dollars, worsen its already strained finances and threaten to cut its credit rating.
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The strike, Boeing's first since 2008, is the latest in a tumultuous year for the company that began in January when a door panel on one of its new 737 Max jets detached in mid-air.
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| BA | Boeing | 156.30 | +2.99 |
+1.95% |
Boeing plans to give employees one week off for every four weeks during the strike.
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The mass layoffs suggest that new CEO Kelly Ortberg is preparing to weather a long-term strike that may not be easily resolved, given anger among rank-and-file workers who are demanding a 40 percent pay increase and the reinstatement of performance bonuses.
Reuters contributed to this report.
