Boeing Offer Falls Short (Update)

CHARLOTTE, N.C. -- In its final offer to 27,000 unionized workers, Boeing(BA Quote - Cramer on BA - Stock Picks) boosted earlier pay offers but didn't back down on its desire for the flexibility to increase outsourcing.

"We believe this is the best contract offer in America this year," Doug Kight, Boeing's lead labor negotiator, told reporters Thursday, hours after the company made its final offer to negotiators for the International Association of Machinists. "We believe it will probably be the best contract offer in America next year and maybe the year after."

The offer enables employees "to share in the success ... have helped to create, but also is good for our business," he said.

Now Boeing will begin trying to sell the offer to union members, a multimedia effort that will include radio commercials by Scott Carson, CEO of Boeing Commercial Airplanes. However, although Kight praised the IAM negotiators, he made it clear the company has nothing more to negotiate in the days before a scheduled Sept. 3 vote.

If they reject the contract, workers could strike as early as Sept. 4 , but only if two-thirds of those voting also vote to go on strike.

Boeing offered a pay increase of 11% over three years, up from the offer of 9% it made on Tuesday, as well as several tempting sweeteners. They include a signing bonus of $2,500 if the contract is approved in the scheduled Sept. 3 vote, as well as an additional lump-sum payment of $2,500 -- or 6% of annual pay, whichever is more.

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