Boeing engineers vote on new proposal that could end strike

Boeing and its machinists' union have agreed on a new contract proposal, the union said Saturday, outlining an agreement that could end a more than month-long strike that has hampered the manufacturers' aircraft production.

The ratification vote is scheduled for Wednesday.

The new proposal includes 35% pay raises over four years, a higher signing bonus of $7,000, guaranteed minimum payouts in an annual bonus program and increased 401(k) contributions, among other things.

Acting US Labor Secretary Julie Su met with both parties earlier this week. “With the help of Acting U.S. Secretary of Labor Julie Su, we have obtained a negotiated proposal and resolution to end the strike that is worthy of presentation to members and worthy of your consideration,” said the International Association of Machinists and Aerospace Workers District 751 said in a statement Saturday.

The strike began on September 13 after more than 30,000 machinists overwhelmingly rejected a tentative agreement that would provide for a 25% wage increase over four years. Boeing later made a watered-down offer, but the union criticized it, saying it was not negotiated.

“We look forward to our employees voting on the negotiated proposal,” Boeing said in a statement.

Boeing is working to stop losing money as it grapples with a safety crisis stemming from a near-catastrophic door plug failure on one of its 737 Max planes earlier this year and challenges in its other programs.

The company said earlier this month that it would report a large loss and record charges of about $5 billion in its commercial and defense divisions. A ratified deal on Wednesday, when Boeing also reports full results, would be a victory for new CEO Kelly Ortberg, who took the company's top job in August and has been tasked with revamping the company.

On October 11, he announced a 10% job cut to Boeing's workforce and that the company would stop producing 767s when orders are filled in 2027.