In a recent development, Boeing Co. (NYSE:BA) has made a final pay offer to its striking workers, but the workers' union has declined to put it to a vote.
What Happened: Boeing, on Monday, made a "best and final" pay offer to its striking workers, which included reinstating a performance bonus, enhancing retirement benefits, and doubling a ratification bonus to $6,000 if the workers accepted the offer by Friday, Reuters reported on Tuesday.
The International Association of Machinists and Aerospace Workers (IAM) declined to vote on the offer, stating that the planemaker had refused to negotiate over the proposal, which did not meet the members' demands.
"Logistically we don't have the ability to set up a vote for 33,000 people in a few days like that anyway. Plus, it missed the mark on many of the things our members said were important to them," said Jon Holden, the president of IAM District 751.
"We are not obligated to vote (on) their offer. We may, down the road. But our hope is that we can get into some discussion so we can actually address the need of our members."
The strike, which began on Sep. 13, is the union's first since 2008. The workers, who are seeking a 40% pay increase and the reinstatement of a performance bonus, had previously rejected an offer by the company.
Why It Matters: The rejection of Boeing's final offer comes after the company sweetened its labor deal in an attempt to end the strike that has been costing the planemaker hundreds of millions of dollars each week. The strike began after more than 30,000 machinists in Seattle and Oregon rejected Boeing's latest contract offer, with 96% voting to walk off. Despite a 25% raise on the table, workers argued the offer failed to match the skyrocketing cost of living in the Seattle area. Negotiations remain tense, and the union's frustration is mounting.
Boeing's stock has been affected by the strike, with the company furloughing thousands of U.S. employees, executives, and non-essential contractors in a bid to cut costs.
Price Action: As per Benzinga Pro, Boeing stock closed 1.96% higher at $156.30 on Monday after the company presented the new deal. However, post the rejection, the stock was trading only slightly lower, around 0.15%, during Tuesday's pre-market.
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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari