Boeing and its machinists’ union have reached a new contract proposal that could bring an end to the month-long strike that has impacted the company’s aircraft production. The union, the International Association of Machinists and Aerospace Workers District 751, announced on Saturday that the vote on the new deal is scheduled for Wednesday.
The proposed agreement includes a significant 35% wage increase over the next four years, a $7,000 signing bonus, guaranteed annual bonus payouts, and improved 401(k) contributions. These terms represent a more favorable offer compared to Boeing’s previous proposal.
This breakthrough came after Acting U.S. Secretary of Labor Julie Su facilitated discussions between both parties earlier in the week. The union stated, “With the help of Acting U.S. Secretary of Labor Julie Su, we have received a negotiated proposal and resolution to end the strike, and it warrants presenting to the members and is worthy of your consideration.”
The White House also commented on the negotiations, with a spokesperson stating, “President Biden believes the collective bargaining process is the best way to achieve good outcomes for workers, and the ultimate decision on a contract will be for the union workers to decide.”
The strike, which began on September 13, followed the overwhelming rejection of an earlier contract offer that included a 25% wage increase over four years. Boeing later offered an improved deal, but it was criticized by the union for not being properly negotiated.
In a statement, Boeing expressed optimism, saying, “We look forward to our employees voting on the negotiated proposal.”
The strike has added to Boeing’s challenges, as the company is struggling to control costs amidst safety concerns, including a near-catastrophic incident involving the door plug on one of its 737 Max jets earlier this year. Boeing has also faced difficulties with its other programs, leading to a projected loss and charges of around $5 billion in its commercial and defense units.
This new proposal, if ratified, would mark a win for Boeing’s new CEO, Kelly Ortberg, who took over in August and has been tasked with turning around the company. Ortberg has already announced significant changes, including a 10% workforce reduction and plans to cease production of the 767 aircraft by 2027 once current orders are fulfilled.