Boeing has reached a new contract proposal with the union representing striking machinists, aiming to resolve a prolonged walkout that has severely impacted airplane production for over a month.
The International Association of Machinists and Aerospace Workers announced on Saturday that a ratification vote is scheduled for Wednesday.
The latest agreement proposes a 35% pay increase over the next four years, a rise from the previous offer of 30%. Additionally, the upfront bonuses for workers would be raised to $7,000 each, up from $6,000.
Although this proposal does not reinstate a traditional pension plan—something that the approximately 33,000 striking workers had hoped for—it does propose an increase in contributions to the 401(k) retirement plans, with Boeing committing to match these contributions.
Boeing expressed optimism about the upcoming employee vote on the new proposal, stating, “We look forward to our employees voting on the negotiated proposal.”
The strike, which began on September 14, has brought production of several Boeing models, including the 737 and its Max variant, as well as the 767 and 777, to a standstill. Meanwhile, production of the 787 Dreamliners continues at a nonunion facility in South Carolina.
The strike’s impact has prompted Boeing’s new CEO, Kelly Ortberg, to implement approximately 17,000 layoffs and explore avenues to generate up to $25 billion through new stock or debt to strengthen the company’s financial position.