Boeing and the machinists’ union have come to an agreement on a new contract proposal that could potentially bring an end to the strike that has been ongoing for over a month. The ratification vote for this new proposal is scheduled for Wednesday.
The new proposal includes some significant changes, such as a 35% wage increase over four years, a higher signing bonus of $7,000, guaranteed minimum payouts in an annual bonus program, and increased 401(k) contributions. This proposal comes after Acting U.S. Secretary of Labor Julie Su intervened and helped facilitate negotiations between both parties.
The strike initially began on September 13 when more than 30,000 machinists rejected a tentative agreement that offered 25% wage increases over four years. Despite Boeing offering a revised proposal, the union deemed it unacceptable, leading to the prolonged strike.
Boeing is currently facing financial challenges due to safety concerns related to its 737 Max aircraft and other program issues. The company recently announced significant losses and plans to implement job cuts. A successful ratification of the new contract proposal on Wednesday would be a positive development for Boeing and its new CEO Kelly Ortberg, who is working on restructuring the company.
Overall, this new contract proposal offers hope for both Boeing and its employees as they work towards resolving the strike and moving forward with their operations. The involvement of government officials and the collective bargaining process highlights the importance of reaching agreements that benefit all parties involved.
