Boeing and the union representing striking machinists have reached a new contract proposal aimed at ending a prolonged walkout that has severely impacted airplane production.
The International Association of Machinists and Aerospace Workers announced plans for a ratification vote on Wednesday, according to AP News.
The latest offer includes a 35% pay increase over four years, up from the previous 30% proposal, and raises the ratification bonus to $7,000 per worker.
Although the proposal does not reinstate a traditional pension plan, it enhances 401(k) contributions that Boeing will match and preserves performance bonuses at a minimum of 4% of pay, which Boeing had sought to eliminate.
“The fact the company has put forward an improved proposal is a testament to the resolve and dedication of the frontline workers who’ve been on strike — and to the strong support they have received from so many,” union district presidents Jon Holden and Brandon Bryant said in a statement.
“We look forward to our employees voting on the negotiated proposal,” Boeing said.
The union credited acting Labour Secretary, Julie Su for her role in facilitating the new proposal, highlighting the Biden administration’s concern over the strike’s economic impact.
Details regarding the timeline for workers’ return to their jobs, contingent on the approval of the deal, will be addressed in the upcoming vote.
About 33,000 members of IAM District 751 initiated a strike on September 13 after over 94% voted against a Boeing offer that, despite union leadership’s support, did not meet the union’s demand for a 40% pay raise.
Chastened by the earlier rejection, union leaders opted not to present another Boeing offer for a membership vote in early October.
On Saturday, union officials stopped short of endorsing the new offer, but told members it is “worthy of your consideration.” They said that when the annual pay raises are compounded, they total 39.8%.
Boeing reported that the average annual pay for machinists stands at $75,608.
The ongoing strike by workers in Washington state, Oregon, and California has halted production of key models like the 737, including the 737 Max, as well as the 767 and 777.
The strike has prompted new CEO, Kelly Ortberg to announce around 17,000 layoffs and initiate plans to raise up to $25 billion through new stock or debt to strengthen the company’s financial position.
