Boeing and the union representing striking machinists have negotiated a new contract with bigger raises and bonuses to end a costly strike that has disrupted plane production for more than a month.
The International Association of Machinists and Aerospace Workers announced early Saturday that it plans to hold a ratification vote on Wednesday.
The union said the deal would increase wages by 35% over four years, up from the 30% offered last month. Upfront bonuses will also increase from $6,000 to $7,000 per employee.
The new proposals do not reinstate the traditional pension system, which is the government’s main demand. 33,000 striking workers — but it would increase contributions to a 401(k) retirement plan matched with Boeing, the union said.
Boeing said in a statement that it “looks forward to our employees voting on the negotiated proposal.”
Approximately 33,000 members of IAM District 751 began their strike on September 14th. The strike halted production of Boeing’s 737, 767 and 777 aircraft, including the 737 Max. Boeing continues to manufacture the 787 Dreamliner at a non-union plant in South Carolina.
strike Commercial flights are not affected But it marks another setback for the aerospace giant, whose reputation and finances have been hit by manufacturing problems and multiple federal investigations this year.
Earlier this month, Boeing announced plans to cut 10% of its global workforce, or about 17,000 workers, as factories were idle due to strikes. An S&P Global report estimates that the company is losing $1 billion per month due to demonstrations.