Boeing strikers will vote on 35% pay raise offer

Union members had previously rejected an offer that included a 30% wage bonus, saying it was not enough to cover cost-of-living increases.

The union wanted a 40% salary increase and the reinstatement of a defined benefit pension, which guarantees income in retirement.

While the latest offer is closer to the desired salary increase than the previous offer, it does not include a defined benefit pension, which would guarantee specific monthly benefits upon retirement.

Includes a $7,000 (£5,365) bonus if they accept the deal, reinstated incentive plan and enhanced contributions to workers’ retirement plans, including a one-off $5,000 contribution plus up to 12% in employer contributions, International Association of Machinists and Aerospace Workers Local 751 said.

The strike dismayed the Biden administration.

Acting U.S. Secretary of Labor Julie Su met with union representatives and Boeing executives in Seattle this week to encourage a resolution. The company plays an important role in the US economy.

It has also been under scrutiny since an incident in January when a defect caused a panel on a new Alaska Airlines Boeing 737-MAX jet to explode shortly after takeoff.

The Federal Aviation Administration has banned the planemaker from increasing production, and the agency opened a new safety inquiry into Boeing on Friday.

In July, Boeing agreed to plead guilty to a criminal fraud conspiracy charge and pay at least $243.6 million (£187 million) after violating a 2021 deferred prosecution agreement in relation to two 737 planes. -MAX that were lost in almost identical accidents that claimed 346 lives five years ago.