The International Association of Machinists and Aerospace Workers said an overnight bargaining session led to Boeing’s new offer and workers will vote on Wednesday whether to accept it.
Under the new contract offer, employees can choose to receive an $8,000 lump sum payment — minus tax withholding — upon ratification or choose to deposit the full amount into a 401(k) plan. The company is dropping its revised 401(k) match offer.
“This new proposal builds on our previous strong, highly competitive one and directly addresses the issues raised by our employees. We expect them to vote yes on Wednesday,” Boeing said in a statement Saturday.
Union members at three Boeing defense plants overwhelmingly rejected the company’s previous proposal a week ago.
Workers at three plants in Missouri and Illinois manufacture the F-15, F-18, T-7A trainer and MQ-25 unmanned refueler. Boeing said on July 24 that it was activating a contingency plan in the event of a strike. But CEO Dave Calhoun told investors during a conference call this week that deliveries to military customers would be delayed if the strike did occur.
The standoff began after the union criticized Boeing’s 401(k) payments in the contract and workers rejected the offer.
“Boeing previously took away pensions from our members, and now the company is unwilling to adequately compensate our members’ 401(k) plans,” the union said on July 24.
Boeing’s first 401(k) proposal on Sunday included a company match of employee contributions to employees, with automatic contributions of 2% for 2023 and 2024, as well as contributions of up to 10% of employees’ wages. Boeing also offered a ratification bonus of $3,000.
Boeing currently offers a 4% company contribution and a 75% match on the first 8% of an employee contribution.
– CNN Business’ Chris Isidore contributed to this report