Boeing and the union representing striking machinists has negotiated a new contract proposal that would provide bigger wage increases and bonuses in an effort to end a costly strike which has crippled aircraft production for more than a month.
The International Association of Machinists and Aerospace Workers said early Saturday that it plans to hold a ratification vote on Wednesday.
The union said the deal would increase pay by 35% over four years, up from 30% offered last month. It also increases advance bonuses to $7,000 per worker instead of $6,000.
The new offer would not restore a traditional pension plan – a key requirement of it 33,000 striking workers — but it would increase the amount of contributions to 401(k) pension plans that Boeing would match, the union said.
“We look forward to our employees voting on the negotiated proposal,” Boeing said in a statement.
About 33,000 members of IAM District 751 began a strike on September 14. The strike has halted production of the Boeing 737 including the 737 Max and the 767 and 777. Boeing continues to build the 787 Dreamliners at a non-union plant in South Carolina.
The strike will not affect commercial flights but represents another setback for the aerospace giant, whose reputation and finances have been hit by manufacturing problems and several federal investigations this year.
Earlier this month, Boeing said it plans to cut 10% of its global workforce, or about 17,000 workers, amid the strike that has idled factories. A report from S&P Global estimates that the company is losing $1 billion a month on the demonstration.