Boeing executives have presented a new proposal to the St. Louis-area machinists union as its strike continues into its fourth month.
The proposal includes a $6,000 ratification bonus but not the $3,000 in restricted stock units and retention bonuses in the previous plan. Those options were removed to bring more cash up front, said Boeing President and CEO of Boeing Defense, Space & Security Steve Parker in a letter to striking workers on Monday.
Parker said parts of the previous proposal remain, including an increase in vacation and sick leave. It also includes the option to cash out vacation time that can't be carried over if a worker is above the 80 hours cap.
“That means the average base pay will go from $75,000 to $109,000 a year. And, there’s the potential for even more value with overtime,” Parker said.
The union will vote on the proposal on Wednesday. If it's approved, workers would return to Boeing on Nov. 17. Parker said a vote to approve the contract would also guarantee paid holidays during the Thanksgiving and winter breaks.
The International Association of Machinists and Aerospace Workers represents about 3,200 workers in the St. Louis area. Union members rejected Boeing’s last proposal 51% to 49%. Last month’s proposal divided the ratification bonus into $3,000 in year one and $1,000 in year four. The contract also added a year of pay raises for top-paid employees but was criticized for subtracting from attendance bonuses.
