People sing during an International Association of Machinists and Aerospace Workers (IAM) strike march at Seattle Union Hall in Seattle, Washington, on October 15, 2024.
Jason Redmond | AFP | Getty Images
Boeing The union and the mechanics union have reached a new contract proposal, outlining an agreement that could end a strike that has lasted more than a month and has hampered aircraft production at manufacturers, the union said on Saturday.
A vote on ratification is scheduled for Wednesday.
The new proposal includes 35% pay increases over four years, a higher signing bonus of $7,000, guaranteed minimum payments in the annual bonus program and higher 401(k) contributions among other changes.
Acting US Labor Secretary Julie Su met with both parties earlier this week. “With the assistance of Acting US Secretary of Labor Julie Su, we have received a negotiated proposal and resolution to end the strike, which warrants presentation to members and merits consideration,” International Association of Machinists and Aerospace Workers said. 751 said in a statement on Saturday.
“President Biden believes the collective bargaining process is the best way to achieve good outcomes for workers, and the final decision on the contract will rest with unionized workers,” a White House spokesperson said in a statement.
The strike began on September 13 after more than 30,000 mechanics overwhelmingly rejected an initial agreement that included a 25% pay rise over four years. Boeing later made a sweet offer, but the union criticized it, saying it was not negotiated.
“We look forward to our employees voting on the negotiated proposal,” Boeing said in a statement.
Boeing is working to stem the cash flow as it grapples with a safety crisis caused by a near-catastrophic door seal explosion on one of its 737 MAX planes at the beginning of the year and challenges in its other programs.
The company said earlier this month that it would report a huge loss and take costs of about $5 billion at its commercial and defense units. The contract ratified on Wednesday, when Boeing also reports full results, will be a victory for new CEO Kelly Ortberg, who took over the company's top job in August and is charged with reshaping the company.
On October 11, he announced a 10% job cut from Boeing's workforce and that the company would stop manufacturing 767 aircraft when orders are met in 2027.
