Boeing has offered striking machinists a 35% pay raise over four years in a new contract proposal it hopes will end the month-long strike.
About 33,000 unionized workers, mostly in Seattle, will vote Wednesday on whether to accept the offer from the airline giant.
They have been on strike since September 14, halting production of the 737 MAX as well as the airline’s 767 and 777 planes.
The company’s profits were hit so hard that earlier this week it announced it was seeking $35 billion in additional funding. It also said it would have to lay off 17,000 workers – about 10% of its workforce – in November.
“The future of this contract is in your hands,” the union told workers on Saturday.
Union members previously rejected an offer that included a 30% salary bonus, saying it was not enough to cover rising costs of living.
The union is seeking a 40% pay increase and the restoration of defined benefit pensions, which guarantee an income in retirement.
While the latest offer is closer to the desired salary increase than the previous offer, it does not include a defined-benefit pension, which guarantees specific monthly benefits upon retirement.
It includes a $7,000 (£5,365) bonus if they accept the deal, a reinstated incentive plan and enhanced contributions to workers’ retirement plans, including a $5,000 contribution $ one time plus up to 12% employer contributions, the International Association of Machinists and Aerospace Workers Local 751 said.
The strike has demoralized the Biden administration.
Acting U.S. Labor Secretary Julie Su met with union representatives and Boeing executives in Seattle this week to encourage a solution. The company plays an important role in the US economy.
It has also come under scrutiny since an incident in January when a defect caused a panel on Alaska Airlines’ new Boeing 737-MAX jet to explode shortly after takeoff.
The Federal Aviation Administration has barred the planemaker from increasing production, and the agency opened a new safety investigation into Boeing on Friday.
In July, Boeing agreed to plead guilty to criminal fraud conspiracy and pay at least $243.6 million after violating a 2021 deferred prosecution agreement related to two 737-MAX aircraft lost in the crash. The accidents are almost identical. had claimed 346 lives in the previous five years.
