Boeing sweetens job offer with “best and final” offer

Boeing The company sweetened its wage offer on Monday, saying it was the “best and last” proposal for its more than 30,000 machinists as the strike that has halted much of the aerospace giant's aircraft production enters its second week.

The new offer increases salaries, reinstates annual bonuses and increases the bonus paid upon ratification of the contract, Boeing's website said. Other changes include an increase in salaries, the company's website said.

The company's new offer includes a 30 percent wage increase over four years, up from the 25 percent originally proposed, doubling the ratification bonus to $6,000, reinstating an annual bonus for machinists and increasing the company's 401(k) match.

The International Association of Machinists and Aerospace Workers union said on Monday that it was reviewing the offer.

“Boeing leaders have always known they can do better, and this proposal shows the company can do better,” Brian Bryant, the union's international president, said in a written statement.

Boeing said the offer was subject to ratification by 11:59 p.m. PT Friday.

The new offer is Boeing's latest attempt to end a costly strike, the first by the unionized group of workers since 2008, and is increasing pressure on new CEO Kelly Ortberg to reach an agreement.

Bank of America analyst Ron Epstein estimates that the strike is costing Boeing $50 million a day. Rating agencies warn that the longer the strike continues, the greater the risk of a downgrade for the company.

Boeing said that in the early days of the strike, it began temporarily furloughing non-union workers, including managers, and implemented other cost-cutting measures such as a hiring freeze, limited travel and the elimination of first- and business-class airline tickets for workers.

Both Boeing and the union expressed disappointment with last week's negotiations.

The strike came about after workers voted against the union's previous proposal by a 94.6% majority.

Striking machinists in Renton, Washington, told CNBC last week that they rejected the first union contract offering higher wages because they wanted their wages to keep pace with the sharply increased cost of living in the Seattle area.

Some workers said in interviews that they had prepared for a long strike and had begun taking on extra jobs, such as delivering food or working in warehouses.