Facing mounting financial losses and halted commercial airplane assembly across Washington and Oregon, Boeing announced a revised 'best and final' contract offer directly to its 33,000 striking machinists on Monday. The aerospace giant sweetened its proposed general wage increase to 30% over four years, up from the 25% rejected overwhelmingly by union members ten days earlier.
The aggressive proposal represents Chief Executive Officer Kelly Ortberg's highest-stakes attempt yet to bring an end to a walkout that has shut down final assembly of Boeing's cash-generating 737 MAX, 777, and 767 aircraft. Wall Street analysts estimate the prolonged stoppage is draining Boeing's cash reserves by more than $100 million per day.
Sweetened Compensation Terms and Reinstated Bonuses
In addition to the headline 30% general wage boost—which compounds to roughly 31.4% over the life of the four-year pact—the new proposal reinstates the Aerospace Machinists Performance Program (AMPP). Machinists had furiously objected when the previous tentative agreement eliminated that annual productivity bonus, which historically yielded 2% to 4% in supplemental pay.
The company also doubled the upfront contract ratification bonus from $3,000 to $6,000, pledged a 100% company match on employee 401(k) retirement contributions up to the first 8% of salary, and maintained existing employee cost-sharing on comprehensive healthcare coverage. Boeing stipulated that union members must vote to ratify the agreement before 11:59 p.m. Pacific Time on Friday.
“We have listened to our employees and their leadership, and this improved offer addresses the concerns they raised while ensuring our business can compete and invest in the future.”
Union Pushback Over Bypassed Bargaining Table
However, leadership at International Association of Machinists and Aerospace Workers (IAM) District 751 reacted with sharp indignation to the public announcement. Union president Jon Holden criticized Boeing executives for circumventing the formal collective bargaining committee and publishing the contract directly to the workforce and global news media before mediators could facilitate review.
Union officials reiterated that workers remain determined to secure a 40% wage increase and address long-standing grievances regarding the elimination of traditional defined-benefit pensions a decade ago. With IAM leadership refusing to schedule a ratification vote ahead of Boeing's Friday deadline, the high-stakes standoff threatens to extend into next month.
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