Boeing and its machinists’ union have reached a new contract proposal, the union said Saturday, outlining a deal that could end a more than month-long strike that has hampered the manufacturers’ aircraft production.
The ratification vote is scheduled for Wednesday.
The new proposal includes pay increases of 35% over four years, a higher signing bonus of $7,000, guaranteed minimum payouts in an annual bonus program and higher 401(k) contributions, among other changes.
Acting US Secretary of Labor Julie Su met with both sides earlier this week. “With the assistance of Acting U.S. Secretary of Labor Julie Su, we have received a negotiated proposal and resolution to end the strike, and this deserves a presentation to the membership and is worthy of your attention,” the International Association of Machinists and Aerospace Workers District. 751 said in a statement Saturday. The strike began on September 13 after more than 30,000 train drivers overwhelmingly rejected a tentative deal that included a 25% pay increase over four years. Boeing later made a softer offer, but the union condemned it, saying it had not been negotiated.
“We look forward to hearing from our employees on the negotiated proposal,” Boeing said in a statement. Boeing is working to stop the bleeding of cash as it grapples with a safety crisis stemming from a near-catastrophic blow to the door plug of one of its 737 Maxes. starts the year and challenges in his other programs.
The company said earlier this month that it will report a major loss and collect charges of about $5 billion across its commercial and defense units. A ratified contract on Wednesday, when Boeing also reports full results, would be a victory for new CEO Kelly Ortberg, who took the company’s top job in August and has been charged with turning around the company.
On October 11, he announced job cuts of 10% of Boeing’s workforce and that the company will stop making 767s when orders are filled in 2027.
This article was originally published on NBCNews.com
