Boeing and IAM union agree on new deal. Ratification vote takes place next week: NPR

Terry Muriekes (center), a 38-year tool warehouse worker at the Boeing factory in Everett, Washington, holds a sign during a strike rally for the International Association of Machinists and Aerospace Workers (IAM) at a union hall in Seattle Tuesday.

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Leaders of Boeing's machinist union announced Saturday that they have reached a “negotiable proposal” for a new contract with the aerospace giant, after a grueling five-week strike that has left both sides roiled.

The latest proposal calls for a 35% across-the-board wage increase over four years, closer to the union's original demand for a 40% increase over the same period. Boeing's previous offer included a 25% wage increase over the life of the contract.

However, the new agreement does not restore defined pension benefits that were stripped from union members a decade ago and represent one of the union's most ambitious demands.

However, the proposed deal improves the company's 401(k) match, increasing it to 100% from the previous offer of 75%. It also includes a one-time $5,000 contribution to each member's 401(k) contribution and a one-time bonus of $7,000 if employees ratify the proposal.

The vote to approve or reject the new draft contract will take place on Wednesday.

“The future of this contract is in your hands. Thank you for your continued input and support throughout this process,” said the leaders of Districts 751 and W24 of the International Association of Machinists in a letter to their members.

The IAM Negotiating Committee also thanked acting US Labor Secretary Julie Su, who reportedly flew to Seattle to facilitate negotiations.

Boeing spokesman Bobbie Egan said: “We look forward to our employees voting on the negotiated proposal.”

The strike began Sept. 13, days after a vast majority of Boeing's roughly 33,000 union members rejected an earlier agreement between the plane maker and the union's bargaining team.

The strike halted aircraft production at key factories and delayed the launch of a new plane, the 777x, even further from 2025 to 2026. Anderson Economic Group, a consulting firm assessing the financial damage, estimated that Boeing and its suppliers would be fined nearly $100 million US dollar losses have suffered about a week after the strike.

Last week, Boeing CEO Kelly Ortberg announced that the company would cut 17,000 jobs – about 10% of its global workforce – in the coming months due to production delays and the company's difficult financial situation.