Boeing offers 35% pay hike over four years to end machinists' strike

By David Shepardson

(Reuters) - A union representing striking machinists at Boeing (NYSE:BA ) said Saturday that members will vote Wednesday on a new contract deal that includes a 35% 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 Sept. 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% in employer contributions.

Boeing declined immediate comment.

Boeing on Oct. 8 withdrew its enhanced offer that included a 30% wage increase over four years, after talks also attended by federal mediators broke down. The union had been seeking a 40% 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 U.S. 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% 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% of the West Coast workers rejected Boeing's contract offer of a 25% pay rise over four years, prompting the strike.

Source: Investing.com