Boeing presented a best and final offer to its largest union today that retreats from its most unpopular benefits proposals, adds new financial incentives yet remains silent on the key issue of job security.
The nearly 27,000 Boeing workers represented by the International Association of Machinists (IAM) would receive a 14% overall wage increase over three years, including a cost of living adjustment, by approving Boeing's offer. That's better than Boeing's starting offer of 9.5%.
Boeing is also offering a $2,500 bonus to employees if they approve the new contract on 3 September, the day the current contract expires.
The final proposal is further amended by continuing early retiree medical coverage to new hires, removing the last salary and benefits issue that IAM considered a strike concern. Boeing previously withdrew unpopular proposals to abolish pensions for new hires.
"We encourage employees to take time to review the offer carefully, discuss it with their families, and vote in their best interest," said Doug Kight, Boeing VP of labour relations.
IAM's reaction to the final offer was not immediately clear. Only one day earlier, the union's web site threatened a strike if the early retiree medical proposal was not withdrawn, and if Boeing did not accept certain job security provisions related to global outsourcing strategy.
Source: Air Transport Intelligence news
