Boeing and the International Association of Machinists and Aerospace Workers (IAM) have negotiated a new contract proposal aimed at resolving a strike that has halted airplane production for over a month.
The new offer includes a 35% pay raise over four years, an increase from the previous 30%, and a $7,000 ratification bonus per worker, up from $6,000.
While the offer does not reinstate a traditional pension plan, it enhances Boeing's matching contributions to 401(k) retirement plans and retains performance bonuses, ensuring at least 4% of pay.
The union acknowledged that these improvements reflect the determination of the 33,000 workers who have been on strike since September 13, when they rejected Boeing's earlier offer that did not meet their demand for a 40% pay raise.
The union credited acting U.S. Labour Secretary Julie Su for helping facilitate the new offer and plans to hold a ratification vote on Wednesday.
If approved, the deal would allow workers in Washington, Oregon, and California to return to their jobs, potentially ending the strike that has disrupted production of Boeing's 737, 767, and 777 models.
Boeing suppliers, including Spirit AeroSystems, have also been affected, with Spirit announcing furloughs for 700 workers and potential layoffs if the strike extends beyond November.
Boeing CEO Kelly Ortberg has announced layoffs and plans to raise $25 billion through stock or debt to stabilise the company’s finances.
Source:
AP news
Image:
Yahoo Finance
