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Boeing Falls Short of Union Request

The company, in what it bills as a final offer, has floated an 11% raise over three years, but it may not avert a strike.
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has offered a pay raise of 11% over three years its final offer to 27,000 unionized workers, according to a person familiar with the negotiations.

The offer was delivered Thursday to the International Association of Machinists. It is more than the 9% over three years which the company

offered on Tuesday

, but less than the 13% the union had sought, the source tells

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Boeing has also eliminated its proposal to eliminate health care for retirees who are under 65, but has not made any major alterations in a proposal that would allow it to continue to increase outsourcing, the person says. IAM leaders have said either issue could lead to a strike.

Boeing declined to comment. An IAM spokeswoman also declined to comment.

Workers are slated to vote on the contract on Sept. 3, with a strike possible as soon as Sept. 4. Boeing has said that it would make its last and final offer on Thursday and would not alter it afterwards.

The company is expected to provide deals of its offer later Thursday.

Three years ago, the IAM struck the aircraft maker for four weeks.

According to aviation consultant Scott Hamilton, a month-long strike would force Boeing to defer revenues of about $3 billion, and to further delay delivery of its 787 aircraft. The plane is already more than a year behind the original schedule.