Boeing's Labor Showdown: Striking Machinists Face Crucial Vote

Unionized machinists at Boeing will vote on a new contract proposal offering a 35% pay hike to end a five-week strike. The strike halted Boeing's production, affecting job numbers. The proposal includes a bonus, improved 401(k) contributions, and was negotiated with federal assistance.

Striking machinists at Boeing are set to vote Wednesday on a new contract proposal that could end their five-week strike. The new deal promises a 35% pay increase over four years, along with a $7,000 ratification bonus and improved 401(k) contributions, as announced Saturday by both the company and the union.

The strike by around 33,000 unionized workers has impacted Boeing's production of its 737 MAX, 767 and 777 models. Federal mediators were involved in the negotiations, which had previously hit an impasse. Acting U.S. Secretary of Labor Julie Su played a crucial role in the latest discussions, traveling to Seattle to meet both sides.

Boeing's challenges extend beyond labor disputes, as it recently faced FAA safety inquiries and announced significant job cuts. These developments are anticipated to negatively affect upcoming employment reports, intensifying pressure as the U.S. presidential election approaches.

(With inputs from agencies.)