Boeing is making a new offer to the union in hopes of ending a strike now in its second month
Boeing has proposed a new contract to the striking machinists' union, offering a 35% pay increase over four years and $10,000 bonuses per worker, up from the previous offer of 30% and $5,000 bonuses. The union plans a ratification vote on Wednesday. While the proposal does not restore a traditional pension plan, it increases contributions to 401(k) plans. The strike, ongoing since September 14, has halted production of several aircraft models and led to 17,000 layoffs as Boeing seeks to raise up to $10 billion to strengthen its finances.
Boeing and the union representing striking machinists have negotiated a new contract proposal that would provide bigger pay raises and bonuses in a bid to end a costly walkout that has crippled production of airplanes for more than a month.
The International Association of Machinists and Aerospace Workers said early Saturday that it plans to hold a ratification vote on Wednesday.
The union said the deal would increase pay by 35% over four years, up from 30% that was offered last month. It also boosts upfront bonuses to $7,000 per worker instead of $6,000.
The new offer would not restore a traditional pension plan — a key demand of the 33,000 striking workers — but it would increase the amount of contributions to 401(k) retirement plans that Boeing would match, the union said.
“We look forward to our employees voting on the negotiated proposal," Boeing said in a statement.
About 33,000 members of IAM District 751 began a strike on Sept. 14. The strike has halted production of Boeing 737s including the 737 Max, and 767s and 777s. Boeing is continuing to build 787 Dreamliners at a nonunion plant in South Carolina.
The strike has led new Boeing CEO Kelly Ortberg to announce about 17,000 layoffs and take early steps toward raising up to $25 billion from new stock or debt to bolster the company's finances.