Boeing makes revised offer, hopes union will accept and end strike

CRYSTAL CITY, Virginia: Boeing has made a revised contract offer to the union representing striking machinists, aiming to end a walkout that has stalled airplane production for over a month.

The International Association of Machinists and Aerospace Workers (IAM) announced that it will hold a ratification vote on October 23 to decide on the new proposal.

The updated offer includes a 35 percent pay increase over four years, up from the 30 percent proposed last month. Boeing also raised the ratification bonus to US$7,000 per worker, compared to the previous $6,000. While the offer does not reinstate a traditional pension plan - a key demand from the 33,000 striking workers - it does increase the company's contributions to 401(k) retirement plans. It maintains performance bonuses that Boeing initially wanted to remove. These bonuses will now be at least 4 percent of pay, the union said.

Union district presidents Jon Holden and Brandon Bryant praised the improved offer, stating that it reflects the striking workers' "resolve and dedication." Boeing expressed readiness for the upcoming vote and said it looks forward to the outcome.

Acting Labor Secretary Julie Su facilitated the new proposal and met with both sides in Seattle this week, signaling the Biden administration's concern about the strike's impact on the broader economy.

The strike, which began on September 13 after union members rejected Boeing's initial offer, has disrupted production of key aircraft models, including the 737 Max, 767, and 777. Boeing has continued building its 787 Dreamliner at a nonunion plant in South Carolina, but the walkout has strained its supply chain. Spirit AeroSystems, a major Boeing supplier, announced it would furlough 700 workers and consider layoffs if the strike continues beyond November.

While union leaders did not endorse the latest offer outright, they described it as "worthy of consideration," noting that when compounded, the annual pay raises total nearly 40 percent. The outcome of the ratification vote, along with details on when workers might return to their jobs, will be decided on October 22.