Boeing makes new 38% pay rise offer to striking workers

Striking Boeing workers are set to vote on a new offer from the aviation giant, which includes a 38% pay rise over the next four years.

The International Association of Machinists and Aerospace Workers (IAM) union, which represents more than 30,000 striking workers, has endorsed the offer and says it will hold a ballot of its members on Monday.

The walkout started on 13 September, leading to a dramatic slowdown in production and deepening a crisis at the firm.

The union had previously called for a 40% pay increase and workers have rejected two previous offers, including the last offer of a 35% rise.

As well as the proposed pay rise, the latest offer includes a $12,000 bonus (£9,304) for the workers if a deal is reached, up from $7,000 in the previous offer.

“It is time for our members to lock in these gains and confidently declare victory,” an IAM social media post said.

“We believe asking members to stay on strike longer wouldn’t be right as we have achieved so much success.”

Boeing said that the offer would see the workers’ average annual pay rise to $119,309 over the next four years.

“We encourage all of our employees to learn more about the improved offer and vote on Monday, November 4,” Boeing said in a statement.

The new offer also includes changes to the workers’ retirement plans.

Boeing shares rose 2.7% in after-hours trading in New York after the news was announced.

Boeing has been trying to end the strike and shore up its finances.

Boeing’s commercial aircraft business reported operating losses of $4bn for the three months to the end of September.

Earlier this week, it launched a share sale to raise more than $20bn.

It came after warnings that a prolonged strike could lead to downgrades to Boeing’s credit rating that would make it more expensive for it to borrow money.

The company is also moving ahead with plans to lay off around 17,000 workers, with the first redundancy notices expected to be issued in mid-November.

The latest crisis at Boeing erupted in January with a dramatic mid-air blowout of a piece of one of its passenger planes.

Its space business also suffered a reputational hit after its Starliner vessel was forced to return to Earth without carrying astronauts.