Stephen Brashear/Getty Images
- Boeing and union leaders have reached a deal that could end a weekslong strike.
- The proposed deal includes a 35% general wage increase spread over four years.
- The strike, which began September 13, has halted much of Boeing's production.
Boeing and leaders from a union representing striking machinists have reached a deal that could end a strike that has lasted over a month.
The International Association of Machinists and Aerospace Workers Local 751 said on Saturday that it had received "a negotiated proposal and resolution to end the strike" with the help of Acting US Secretary of Labor Julie Su.
It said members would vote on Wednesday on the contract deal, which includes a 35% general wage increase spread over four years, a one-time ratification bonus of $7,000, and enhanced contributions to 401(k) retirement plans.
About 33,000 Boeing workers have been on strike in the Pacific Northwest for over a month, halting much of Boeing's production. It also hurt Boeing's bottom line. Bank of America analysts estimated that the strike is costing Boeing $50 million a day.
"The fact the company has put forward an improved proposal is a testament to the resolve and dedication of the frontline workers who've been on strike — and to the strong support they have received from so many," union leaders said in a statement on Saturday.
In its own statement, Boeing said it looked forward to the vote next week.
Boeing's difficult year
The Federal Aviation Administration temporarily grounded over 170 of Boeing's 737 Max 9 planes in January after Alaska Airlines Flight 1282 lost a door plug in midair. It then launched an investigation into Boeing's safety procedures.
The company also lost some key executives and faced high-profile mechanical problems with its CST-100 Starliner spaceship, leaving two astronauts stuck on the International Space Station for months.
Less than a week after the strike began, Boeing CEO Kelly Ortberg said the company would furlough white-collar workers in an email to employees. The memo didn't say how many employees would be affected.
Ortberg wrote that he and his leadership team would also "take a commensurate pay reduction for the duration of the strike," but the specific amount was not specified.
Layoffs followed soon after.
Boeing announced in an October memo to employees that it would lay off about 10% of its workforce "over the coming months."
Ortberg wrote that Boeing was in a "difficult position," and it was "hard to overstate the challenges we face together."