On Saturday, Boeing and the union announced that striking machinists will vote on a new contract proposal on Wednesday that includes a 35% salary increase over four years, potentially ending a costly five-week strike.
\nSince September 13, some 33,000 Boeing employees who are unionised on the West Coast\u2014the majority of whom are in Washington state\u2014have gone on strike. The work stoppage has further strained the planemaker’s already precarious finances, as it has stopped production of its best-selling 737 MAX as well as its 767 and 777 widebodies.<\/p>\n
According to Local 751 of the International Association of Machinists and Aerospace Workers, the most recent offer includes a $7,000 ratification bonus, a restored incentive plan, and increased contributions to employees’ 401(k) retirement plans\u2014including a $5,000 one-time payment and up to 12% in company contributions.<\/p>\n
After negotiations, which government mediators also attended, broke down, Boeing withdrew its improved offer on October 8 that included a 30% pay rise over four years. The new contract proposal does not include the 40% increase and reinstatement of a defined benefit pension that the union has been demanding.<\/p>\n
The walkout began in September after over 95% of West Coast employees turned down Boeing’s contract offer, which included a 25% salary increase over four years and was approved by union authorities.<\/p>\n