New Boeing offer for striking machinists: 35% pay hike over four years

A union representing striking machinists at Boeing said that members will vote Wednesday on a new contract deal that includes a 35 percent pay hike over four years that could end a more than month-old strike.

Around 33,000 of Boeing's unionized West Coast workers, most in Washington state, have been on strike since September 13. The work stoppage has halted production of the planemaker's best-selling 737 MAX and its 767 and 777 widebodies.

The latest offer includes a $7,000 ratification bonus, reinstated incentive plan and enhanced contributions to workers' 401k retirement plans including a one-time $5,000 contribution plus up to 12 percent in employer contributions.

Boeing declined immediate comment.

Boeing on October 8 withdrew its enhanced offer that included a 30 percent wage increase over four years, after talks also attended by federal mediators broke down. The union had been seeking a 40 percent hike and restoration of a defined benefit pension.

International Association of Machinists and Aerospace Workers Local 751 said on Saturday in a social media post that with the help of Acting US Secretary of Labor Julie Su they had received a proposal, telling striking workers it "is worthy of your consideration."

On Monday, Su was in Seattle for her first in-person effort to help reach a new Boeing contract and returned on Thursday night to resume efforts after a trip to Detroit.

A spokesperson for Su said Friday the secretary "is currently in Seattle having discussions with both parties. She has met with the CEO and the union and has been in touch multiple times throughout the process."

Last Friday, Boeing announced it would cut 17,000 jobs, or 10 percent of its global staff and take $5 billion in charges, continuing a year of tumult for the company since a new Alaska Airlines 737 MAX 9 airplane suffered a mid-air emergency.

Boeing announced a window for up to $25 billion in stock and debt offerings over the next three years on Tuesday, as well as a $10-billion credit agreement.

In September, nearly 95 percent of the West Coast workers rejected Boeing's contract offer of a 25 percent pay rise over four years, prompting the strike.