by David Shepardson

(Reuters) – Striking mechanics at Boeing (NYSE:) will vote on Wednesday on a recent contract proposal that includes a 35% wage augment over four years, a move that could end a costly five-week strike, the company and the union said on Saturday.

Since September 13, about 33,000 unionized Boeing workers on the West Coast, most in Washington state, have been on strike. The work stoppage halted production of the best-selling 737 MAX plane and the wide-body 767 and 777 planes, putting additional pressure on companies’ already feeble finances.

The latest offer includes a $7,000 signing bonus, a restored incentive plan and increased contributions to employee 401(k) retirement plans, including a one-time $5,000 contribution plus up to 12% employer contributions, the International Association of Machinists and Aerospace Workers said. local 751. .

Boeing said Saturday it “looks forward to our employees voting on the negotiated proposal.” There is still no guarantee that workers will approve the offer after they overwhelmingly rejected the initial proposal. “The future of this contract is in your hands,” the union told workers on Saturday.

Earlier this week, the U.S. Chamber of Commerce called on the social media site

Boeing on Oct. 8 withdrew its improved offer of a 30% wage augment over four years after talks that also included federal mediators broke down. The union demanded a 40% raise and the restoration of the defined benefit pension, which was not included in the recent contract proposal.

Two senior union officials in Seattle told Reuters they believed members would vote for the deal, although they expected a backlash from older workers who demanded Boeing reinstate the defined benefit pension.

In September, nearly 95% of West Coast workers rejected a tentative agreement offering a 25% wage augment over four years approved by union officials, leading to a strike.

This first tentative contract also included a signing bonus of $3,000, which some Boeing employees said was too low, considering that previous contracts had had bonuses of at least $5,000.

On Saturday, the union said in a social media post that, with the lend a hand of acting U.S. Labor Secretary Julie Su, it had received a “negotiated proposal” and told striking workers it was “worth considering.”

Su was in Seattle on Monday to lend a hand sign a recent contract with Boeing in person for the first time, and she returned on Thursday evening to resume her efforts after a trip to Detroit.

Su’s spokesman said Friday that the secretary was in Seattle, holding talks with both sides and meeting with Boeing CEO Kelly Ortberg and the union.

While some reactions on social media were positive for the recent agreement Saturday afternoon, it is not yet clear how workers will vote.

A White House spokesman said: “President (Joe) Biden believes the collective bargaining process is the best way to achieve good outcomes for workers, and the final decision on a contract will rest with union workers.”

Last Friday, Boeing announced it would lay off 17,000 workers, or 10% of its global workforce, and take $5 billion in charges, continuing a year of turmoil for the company since Alaska Airlines’ recent 737 MAX 9 plane crashed in mid-air.

Boeing announced on Tuesday the possibility of offering up to $25 billion in equity and debt over the next three years, as well as a $10 billion credit agreement.

Boeing has faced continued pressure since a door panel flew out of the recent 737 MAX 9 jet in January, prompting the Federal Aviation Administration to bar the planemaker from increasing production. On Friday, the FAA opened a recent investigation into Boeing’s safety.

In July, Boeing agreed to plead guilty to criminal fraud conspiracy and agreed to pay at least $243.6 million after violating a 2021 deferred prosecution agreement.

The labor conflicts are expected to have a negative impact on the October jobs report, which will be released just days before the November 5 U.S. presidential election.

Economists estimate that the strike and weekly leave for non-striking workers, as well as momentary layoffs at Boeing suppliers, resulted in as many as 50,000 nonfarm jobs being cut this month. The economy added 254,000 jobs in September, and the unemployment rate fell to 4.1% from 4.2% in August.