Boeing offers hefty pay hikes to reach tentative deal with union amid weeks-long machinists' strike
Boeing CEO Kelly Ortberg flew to Seattle as the company's 33,000 workers took to the picket line. (Credit: Derrick Louis with Clarity Northwest Photography and Laura Halliday Realgeix with Sotheby's International Realty and KCPQ)
Boeing is offering a new financial package to its striking workers to end the ongoing strike.
Both Boeing and its labor union announced tentative agreements Saturday. Striking machinists will vote on the contract on Wednesday.
International Association of Machinists and Aerospace Workers Local 751 told Reuters the new package includes a 35% pay increase over four years, a new incentive plan and a $7,000 ratification bonus.
The corporation is also offering 12% on employee 401(k) contributions and a one-time contribution of $5,000 to employee retirement accounts.
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A Boeing 737 Max. (Getty Images/Getty Images via Geoffroy Van Der Hasselt/AFP)
The five-week strike primarily involved Boeing's West Coast workers. About 33,000 mechanics have refused to work on the 737 MAX and its 767 and 777 widebodies since Sept. 13.
Boeing said it “looks forward to voting on our workers' negotiation proposals,” but striking workers have rejected Boeing's proposals in the past, even those approved by union officials.
Boeing plans to raise $35 billion to raise money as strike continues
Workers picket outside a Boeing Co. facility during a strike in Everett, Wash., Sept. 16. (Getty Images/Getty Images via M. Scott Brauer/Bloomberg)
About 95% of West Coast workers rejected Boeing's contract offer of a 25% pay increase over four years in September, shortly before the strike began. The previous offer also included a $3,000 signing bonus.
| vaccine | safety | the end | change | change % |
|---|---|---|---|---|
| B.A | Boeing Co. | 155.00 | -0.31 |
-0.20% |
The union said the new contract was helped by acting U.S. Labor Secretary Julie Sue and told striking workers that it “deserves your consideration.”
Boeing Corporate World Headquarters in Chicago. (Scott Olson/Getty Images/Getty Images)
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Fox Business has reached out to Boeing for comment.
Reuters contributed to this report.
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