The massive strike has entered its second week, dealing a heavy blow to the global aviation giant Boeing in the USA.

On Monday, Boeing finally made concessions, indicating willingness to provide a 30% salary increase to the striking workers.

This is the largest strike since 2008, causing Boeing's commercial aircraft production to almost come to a standstill. Since the strike started on the 13th, Boeing's stock price has dropped by 3%; year-to-date, Boeing's stock price has declined by over 33%.

Boeing proposes a 30% salary increase to end the strike.

On Monday, Boeing's official website released the latest compensation quote.

The new agreement makes concessions in four aspects:

First, within four years, the overall wages will be increased by 30%, with workers receiving an immediate 12% raise, followed by a 6% raise each year for the next three years; higher than the previous overall 25% raise and immediate 11% raise.

Second, approved bonuses doubled from the original $3,000 to $6,000.

Third, restore the AMPP (Annual Merit Performance Program) bonus. The program, introduced by Boeing in 2012, aims to reward aerospace & defense mechanics based on performance in safety, quality, and productivity.

Fourth, increase subsidies for the 401(k) retirement plan, raising the company matching rate to 100% of the first 8% of wages, and continue to contribute 4% of the company's share automatically; previously it was 75% of the first 8% of wages, plus the company's automatic 4% contribution.

Boeing has requested that the union must approve the contract by midnight on Friday, September 27.

The company stated in a release: "After hearing the opinions and concerns of our employees, Boeing today presented our best and final offer."

It is worth noting that the term "best and final offer" indicates that the party making the offer does not intend to negotiate further. If negotiations stall, it would lead to a "deadlock."

Despite making many concessions, this still did not meet the union's insistence on a 40% salary increase demand, nor did it restore the traditional retirement plan that union members hoped for.

The International Association of Machinists and Aerospace Workers (IAM) said on Monday that they are reviewing the proposal. While the union did not directly reject the proposal, they have not indicated readiness to submit it to members for voting approval.

IAM International President Brian Bryant said, "This news confirms every step the hardworking Boeing employees on the picket line have taken so far."

He also stated, "Employees know Boeing's executives can do better, showing that workers have always been right. We will analyze the proposal to see if it can help workers make enough progress on top of their previous sacrifices.

Strike deal a heavy blow to Boeing

On September 13, after a temporary contract was rejected by nearly 95% of the vote, around 33,000 Boeing workers went on strike.

As this strike was the first large-scale worker strike since 2008, it led to heavy losses for Boeing.

According to analysis by Ron Epstein, an aerospace analyst at Bank of America, this strike caused most of Boeing's aircraft production to halt, resulting in approximately $50 million in losses for Boeing per day. The strike also affected Boeing's extensive supplier network, with some suppliers being instructed to halt deliveries.

To address the financial crisis, Boeing has taken various measures to cut costs.

Boeing CEO Kelly Ortberg stated that Boeing plans to arrange selected employees to take one week of unpaid leave every four weeks during the strike, while he and the leadership team will take corresponding pay cuts during the strike.

In addition, Boeing also announced cuts to purchases from suppliers and vendors to save cash. At the same time, the company announced a freeze on hiring, no longer offering pay raises, and reductions in travel budgets.

A Boeing supplier mentioned that leaves or layoffs will cause problems in the coming months as training employees for such technical and detailed work takes a long time.

Bank of America analyst Epstein also believes that currently, skilled labor is hard to find, especially in the aerospace & defense sector.

This strike has not only exacerbated Boeing's already tense financial situation but also, worse still, the company faces the risk of a downgrade in its credit rating.

Earlier this month, Wells Fargo & Co analyst Matthew Akers downgraded Boeing's rating to 'shareholding' and lowered the target stock price from the original level to $119.

On September 13, international credit rating agency Fitch issued a warning that if the Boeing company employees' strike continues, it may impact the company's credit rating, thus adversely affecting its operations and financial situation.

In addition, Moody's also placed Boeing's rating on negative watch, indicating that the strike could exacerbate liquidity risks and, if prolonged, could lead to a credit rating downgrade.