Boeing (BA) presented a revised contract proposal to more than 3,200 striking workers at its St. Louis-area defense plants, increasing cash incentives in an effort to resolve a work stoppage that has stretched past three months.
The new offer, announced Monday, doubles the ratification bonus to $6,000 from the roughly $3,000 proposed earlier, though it keeps planned wage increases of 24% over five years unchanged. The company said it eliminated a $1,000 retention bonus and some restricted stock units to make more funds available upfront.
Employees represented by IAM Local 837 assemble the F-15 and F/A-18 fighter jets, T-7 trainer aircraft, munitions and 777X commercial jet components at Boeing’s (BA) Missouri facilities. The union has sought a contract similar to the one secured by Seattle-area members last year, which featured stronger retirement benefits.
In a letter to employees, Steve Parker, Boeing’s (BA) defense chief, said the revised deal would boost average base pay from about $75,000 to $109,000 annually. A vote on the agreement is scheduled for Wednesday, he added.
Parker said Boeing (BA) already has hired permanent replacements and filled some positions but pledged that all union members would be reinstated with no layoffs if the contract is approved.
The strike has involved several failed bargaining rounds and public political attention, including from Senator Bernie Sanders, who urged Boeing (BA) to reach a fair deal.
The International Association of Machinists and Aerospace Workers has not yet commented on the latest proposal.