By David Shepardson
(Reuters) -Striking Boeing (NYSE ) machinists will vote on Wednesday on a new contract proposal that includes a 35% pay increase over four years that could end a costly five-week strike, the company and the union on Saturday.
About 33,000 of Boeing's unionized West Coast workers, most in Washington state, have been on strike since Sept. 13. The work stoppage has halted production of the planemaker's best-selling 737 MAX and its wide-body 767s and 777s.
The latest offer includes a $7,000 confirmation bonus, a reinstated incentive plan and enhanced contributions to workers' 401(k) retirement plans, including a one-time $5,000 contribution plus up to 12% in employer contributions, the company said. Local 751 of the International Association of Machinists and Aerospace Workers. .
Boeing said Saturday that it hopes “our employees will vote on the negotiated proposal.” Still, there is no guarantee that workers will approve the proposal after they overwhelmingly rejected an initial proposal. “The future of this contract is in your hands,” the union told workers Saturday.
On October 8, Boeing withdrew its improved offer that included a 30% pay increase over four years, after talks also attended by federal mediators collapsed. The union has been seeking a 40% raise and the reinstatement of a defined benefit pension.
The union said in a social media post Saturday that with the help of Acting U.S. Secretary of Labor Julie Su, they had received a “negotiated proposal” and told striking workers that it “deserves their consideration.” .
On Monday, Su was in Seattle for his first in-person effort to help reach a new contract with Boeing and returned Thursday night to resume efforts after a trip to Detroit.
A spokesperson for Su said Friday that the secretary “is currently in Seattle holding discussions with both parties. She has met with the CEO and the union and has been in contact several times throughout the process.”
Last Friday, Boeing announced it would cut 17,000 jobs, or 10% of its global workforce, and take $5 billion in charges, continuing a year of tumult for the company since a new 737 MAX 9 plane from Alaska Airlines suffered an emergency in the air.
Boeing on Tuesday announced a window for up to $25 billion in equity and debt offerings over the next three years, as well as a $10 billion credit agreement.
In September, nearly 95% of West Coast workers rejected Boeing's contract offer of a 25% wage increase over four years that had been backed by union leaders, sparking the strike.
Boeing has been facing constant pressure since a door panel on a new 737 MAX 9 plane became airborne in January, prompting the Federal Aviation Administration to ban the planemaker from increasing production. The FAA on Friday opened a new safety investigation into Boeing.
In July, Boeing agreed to plead guilty to one count of criminal fraud conspiracy and agreed to pay at least $243.6 million after violating a 2021 deferred prosecution agreement.
The labor fight is expected to have a negative impact on the October jobs report, which will be released days before the Nov. 5 presidential election.
Economists estimate that the strike and continued weekly furloughs of non-striking workers, as well as temporary layoffs at Boeing suppliers, shaved up to 50,000 jobs off nonfarm payrolls this month. The economy added 254,000 jobs in September and the unemployment rate fell to 4.1% from 4.2% in August.
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