Boeing union leaders are endorsing a sweetened contract offered by the airplane maker, signaling an end to a nearly seven-week strike that put a halt to the company's manufacturing operations.
The International Association of Machinists & Aerospace Workers, or IAM, said in a social media post on Thursday evening that Boeing had offered a new contract that includes a 38% raise over four years. The union said it is endorsing the contract and recommends that its members approve the deal during Monday's vote.
"We encourage all of our employees to learn more about the improved offer and vote on Monday, Nov. 4," a Boeing spokesperson said in a statement to Business Insider.
The spokesperson noted that the new deal improves on the company's previous offer of a 35% raise over four years. Workers rejected the proposal on October 23.
The new contract also stipulates a $12,000 ratification bonus, up from $7,000 in the previous proposal.
A representative for the IAM did not immediately respond to a request for comment.
Boeing machinists have been on strike since September 13 after workers rejected a proposal to raise pay by 25% over four years. Union members demanded a 40% raise.
The IAM represents over 32,000 workers in the Pacific Northwest.
Boeing's last strike was in 2008 and lasted nearly two months, causing billions of dollars in depressed revenue, the company said at the time.
The financial impacts of the seven-week strike are not yet clear, but the National Association of Manufacturers estimated that, by October 2, the total "regional economic loss" could be more than $1.65 billion.
A group of Bank of America analysts later estimated the strike could cost Boeing $50 million a day.
"The potential economic impact of this strike cannot be overstated. The aerospace industry directly supports more than 500,000 manufacturing workers in America, and the ongoing strike at Boeing's Puget Sound facilities is poised to have significant economic consequences, not just in the Pacific Northwest but across the entire United States," NAM CEO Jay Timmons said in a statement.
The recent strike added to the litany of issues the more than 100-year-old company has faced this year alone, including a mid-flight panel blowout, leadership shake-ups, a safety audit, and a layoff of about 10% of its 170,000-member workforce.
