Machinists at Boeing, who are currently on strike, will cast their votes this Wednesday on a new contract that offers a 35% salary increase spread over four years, a proposal that might bring an end to the strike that has lasted for five weeks, according to the company and the union.

The new contract proposal includes a $7,000 bonus for ratification, the reinstatement of an incentive plan, and improved contributions to employees’ 401(k) retirement accounts, which features a one-time $5,000 contribution and up to 12% in employer contributions, as stated by the International Association of Machinists and Aerospace Workers Local 751.

Boeing expressed its anticipation for the employees’ decision on the proposed contract but noted that there is no assurance that the workers will approve it, especially since they previously rejected another proposal by a large margin. “The future of this contract is in your hands,” was the message the union conveyed to its members on Saturday.

On October 8, Boeing retracted its previous offer, which included a 30% wage increase over four years, after discussions with federal mediators broke down. The union has been seeking a 40% wage hike and the reinstatement of a defined benefit pension plan, which was not included in the new contract offer.

In September, nearly 95% of the West Coast workers turned down Boeing’s contract proposal of a 25% salary increase over four years, which had received support from union leaders, resulting in the strike.

This earlier offer also included a $3,000 signing bonus, which many Boeing workers indicated was insufficient, noting that past agreements typically included bonuses of at least $5,000.

Labor Secretary Julie Su joins Boeing strike negotiations

The union posted on social media on Saturday that they had received a “negotiated proposal” with the assistance of Acting U.S. Secretary of Labor Julie Su, and encouraged striking workers to give it a thoughtful review.

Su was in Seattle on Monday to engage in negotiations for a new contract with Boeing and returned on Thursday night after a trip to Detroit to continue discussions.

While some online comments were positive regarding the new proposal, it remains uncertain how the workers will ultimately vote.

A White House spokesperson stated, “President (Joe) Biden believes that the collective bargaining process is the best route for achieving favorable outcomes for workers, and it will ultimately be up to the union workers to decide on the contract.”

Last Friday, Boeing revealed plans to lay off 17,000 employees, accounting for 10% of its workforce globally, and take $5 billion in charges, marking a tumultuous year for the company following a mid-air emergency with a new Alaska Airlines 737 MAX 9. On Tuesday, Boeing announced a $25 billion window for stock and debt offerings over the next three years, along with a $10 billion credit agreement.

Boeing has been under pressure since a door panel detached from a new 737 MAX 9 jet in January, leading the Federal Aviation Administration to restrict the company’s ability to increase production. The FAA initiated a new safety investigation into Boeing on Friday.

In July, Boeing agreed to plead guilty to a criminal fraud conspiracy charge and will pay at least $243.6 million following a breach of a deferred prosecution agreement made in 2021.

The ongoing labor disputes are anticipated to negatively influence October’s employment report, which is expected to be released just days before the U.S. presidential election on November 5.

Economists predict that the strike, along with intermittent furloughs for non-striking staff and temporary layoffs among Boeing’s suppliers, could have resulted in the loss of about 50,000 jobs from nonfarm payrolls this month. The economy added 254,000 jobs in September, with the unemployment rate dropping from 4.2% in August to 4.1%.