Boeing workers from the International Association of Machinists and Aerospace Workers District 751 gather on a picket line near the entrance to a Boeing production facility on the day of a vote on a new contract proposal during an ongoing strike in Renton, Washington, U.S. October 23, 2024. David Ryder | Reuters

Boeing union backs sweetened contract offer that could end strike, sets vote for Monday

by · CNBC

Key Points

  • The new contract includes 38% raises over four years and other improvements.
  • The unionized machinists walked off the job on Sept. 13 after rejecting an original tentative agreement and last week rejected another proposal.
  • The walk-out has halted most of Boeing's aircraft production.

In this article

Follow your favorite stocksCREATE FREE ACCOUNT

Boeing and its machinists' union have agreed on a new negotiated offer to raise worker pay and potentially end a crippling strike that began seven weeks ago with a vote on the new proposal set for Monday.

The union urged workers to approve the contract.

"In every negotiation and strike, there is a point where we have extracted everything that we can in bargaining and by withholding our labor," the International Association of Machinists and Aerospace Workers District 751 said Thursday. "We are at that point now and risk a regressive or lesser offer in the future."

The union said that asking its members to stay on strike longer "Wouldn't be right as we have achieved so much success."

Boeing's more than 32,000 machinists, mostly based in the Seattle area, walked off the job on Sept. 13 after turning down a tentative agreement. They rejected another proposal earlier this month, extending the strike.

The new proposal includes 38% general wage increases over four years, up from a previous offer for 35%, bringing the compounding pay increases to close to 44%, the union said Thursday. It also gives workers the option of a $12,000 one-time ratification bonus or to choose a previous offer for a $7,000 ratification bonus and a $5,000 401(k) contribution.

Boeing said Thursday at the end of the contract, machinist pay will average $119,309.

"We encourage all of our employees to learn more about the improved offer and vote on Monday, Nov. 4," Boeing said in a statement.

Read more CNBC airline news

CEO Kelly Ortberg said on his first earnings call last week since taking the top job in August that the company has been "feverishly working to find a solution that works for the company and meets our employees' needs." Hours later, the workers rejected a negotiated proposal.

Workers have repeatedly pushed for higher compensation as the cost of living in the Seattle area — where technology giants like Microsoft and Amazon have ramped up staffing — has surged in recent years.

The strike has further pushed back Boeing leaders' plans to stabilize the aerospace behemoth as it reels from the impact of production flaws and the fallout from safety issues, most recently a door plug that blew out midair from a Boeing 737 Max 9 at the start of the year.

Boeing lost more than $6 billion in the last quarter and warned it would continue to burn cash through 2025.

The Boeing strike impacted Friday's U.S. jobs report.

Don’t miss these insights from CNBC PRO