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Boeing sweetens deal for striking machinists | News

Boeing sweetens deal for striking machinists | News

Boeing made a new offer to its striking machinists’ union on Oct. 31, as the plane maker tries to overcome a debilitating, weeks-long production halt on several aircraft programs.

The International Association of Machinists and Aerospace Workers (IAM) says it will vote on Boeing’s latest contract offer on November 4, a day before American voters elect the country’s next president.

“With the support of Labor Secretary Julie Su, this updated proposal between the union and Boeing includes several important improvements aimed at resolving the strike,” the union says.

The U.S. plane maker’s latest proposal includes an across-the-board wage increase of 38% spread over four years, compared to 35% last year Offer rejected by the union’s vote on October 23rd. This contract proposal was rejected by 64% of IAM members.

Boeing 737 Max, Renton

Boeing also increased its ratification bonus from $7,000 to $12,000 and relaxed its proposed retirement plan for machinists.

“The average annual machinist salary will be $119,309 at the end of this four-year contract if the offer is accepted,” Boeing says. “This is an increase of approximately $43,700 from the average value of $75,608 in the previous contract.”

The new offer retains aspects of the previous offer, including a commitment to build Boeing’s next airliner in Seattle’s Puget Sound area.

Since early September, the strike by Boeing’s 33,000-member machinists union has resulted in production of the 737, 767 and 777 aircraft being halted indefinitely.

After negotiations failed earlier this month, the company announced it would do so is laying off around 10% of its global workforce – approximately 17,000 employees – in addition to the permanent closure of 767 Freighter production and the delay in entering service of the 777-9.

Boeing is losing billions of dollars in revenue every month and announced it earlier this week Selling shares worth about $19 billion to increase liquidity.

Meanwhile, airlines worldwide have been hit by long delivery delays for Boeing aircraft, forcing some to cut passenger capacity and limit medium-term growth plans.