People hold chants during a strike meeting of the International Association of Machinists and Aerospace Workers (IAM) at Seattle Union Hall in Seattle, Washington, on October 15, 2024.
Jason Redmond | AFP | Getty Images
Boeing and its machinists’ union have reached a new contract proposal, the union said on Saturday, outlining an agreement that could end a more than month-long strike that has disrupted the manufacturer’s aircraft production.
A ratification vote is scheduled for Wednesday.
The new proposal includes a 35% salary increase over four years, a higher signing bonus of $7,000, guaranteed minimum payouts in the annual bonus program and higher 401(k) contributions among other changes.
US Acting Secretary of Labor Julie Su met with both parties earlier this week. “With the help of US Acting Secretary of Labor Julie Su, we have received a proposal and a negotiated resolution to end the strike, and we are recommending that it be presented to members and should be considered,” the International Association of Machinists and Aerospace Workers District. 751 said in a statement on Saturday.
“President Biden believes that the collective bargaining process is the best way to get good results for workers, and the final decision on the contract will be up to the union workers,” a White House spokesman said in a statement.
The strike began on September 13 after more than 30,000 workers protested against an unfinished deal that included a 25% wage increase over four years. Boeing later made a sweet offer but the union rejected it saying it was not negotiated.
“We look forward to our employees voting on the proposed proposal,” Boeing said in a statement.
Boeing is working to stem the cash flow as it grapples with a safety crisis stemming from a near-catastrophic door plug explosion on one of its 737 Maxes earlier this year and challenges to its other programs.
The company earlier this month said it would report deep losses and write off about $5 billion in its commercial and defense units. The contract confirmed Wednesday, when Boeing also reports full results, will be a victory for new CEO Kelly Ortberg, who took the company’s top job in August, tasked with reshaping the company.
On October 11, he announced 10% job cuts at Boeing and that the company will stop making the 767 when orders are filled in 2027.
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