Boeing proposed to raise hourly wages for striking workers by 30 percent on Monday, improving on its original offer in an effort to end a 10-day walkout that has shut down Seattle-area factories.
The airline giant has given workers until midnight on Friday to ratify the “best and final offer”.
The union, the International Union of Mechanical and Aerospace Workers, said it was considering the proposal.
About 33,000 IAM members from District 751 in the Pacific Northwest region walked off the job Sept. 13 after overwhelmingly voting against an earlier offer, effectively shutting down assembly plants for the 737 MAX and 777.
The 30 per cent across-the-board pay rise improves on the 25 per cent in the previous offer, which was initially endorsed by IAM leaders before the staff-class workforce decisively rejected it.
UK Labor appear happier despite row over handouts and welfare
The workers are seeking a 40 percent pay increase, citing more than a decade of meager wage increases that have taxed family budgets in an expensive region of the United States during a period of high consumer price inflation.
The new proposal also reinstates an annual bonus that was removed in the previous version.
Line workers had complained that the loss of the bonus meant the earlier offer fell short of the 25 percent wage increase the company had advertised.
The new proposal also doubles a signing bonus to $6,000 and eliminates the company’s contribution to the 401,000 employee plan. But the amended offer does not restore the pension, a request of some workers.
The two sides held a two-day mediation last week with the help of government officials.
Asian markets extend gains as focus turns to US inflation
Boeing CEO Kelly Ortberg said ending the strike was a “top priority.”
Boeing said the latest proposal would have to be ratified by 11:59 p.m. Friday night, setting a tight timeline for IAM leadership to comment on the proposal and orchestrate a vote.
Boeing ‘could do better’
Surveys of front-line workers showed overall wages, bonus reinstatement and pension as priorities, the IAM said.
Brian Bryant, president of the international union IAM, said Boeing’s latest offer “validates” the decision to strike.
“Employees knew that Boeing executives could do better, and this shows that employees have been right all along,” Bryant said in a statement.
Boeing official Mike Corsetti said he looked forward to studying the proposal in detail, saying “it’s closer, but I’m not sure it’s good enough.”
The amended agreement retains other provisions, such as a commitment to build Boeing’s next new airplane in the Pacific Northwest.
Tokyo bounces on weak yen as Asian traders praise big US rate cut
The strike has added to Boeing’s woes as it faces tough scrutiny from regulators over safety concerns.
Federal Aviation Administrator Mike Whittaker is scheduled to participate in two congressional hearings this week on the agency’s oversight of Boeing.
Boeing shares rose two percent.
Source: AFP