Boeing (NYSE:BA) has taken a significant step toward resolving the ongoing strike by its workers on the U.S. West Coast, announcing a substantial increase in wages and benefits in its latest offer to the International Association of Machinists (IAM), the union representing the striking employees.
On Monday, Boeing revealed that it is proposing a general wage increase of 30% for its union members. This considerable raise aims to address the workers' demands for better compensation and to reflect the company's commitment to supporting its workforce amid a competitive aerospace industry landscape.
In addition to the wage hike, Boeing has enhanced its retirement benefits package.
The company says it will increase its matching contribution to the Boeing 401(k) plan to 100% of the first 8% of an employee’s pay.
This change allows workers to significantly boost their retirement savings, providing greater financial security for the future.
Boeing will also continue its automatic 4% company contribution, ensuring a solid foundation for employees' retirement funds.
Furthermore, Boeing is offering a $6,000 ratification bonus as part of the new agreement.
While union leaders have yet to respond to Boeing’s new terms, industry analysts believe that the enhanced offer could bring both parties closer to a settlement, potentially leading to the end of the strike in the coming weeks.
A resolution would allow Boeing to resume normal operations and reduce disruptions in the aerospace supply chain, benefiting both the company and its customers worldwide.