Boeing reaches tentative agreement with machinists union to end strike

Boeing (BA) shares are rising in premarket trading Friday after the company reached a tentative agreement with its machinists union on a new contract, potentially ending a crippling seven-week strike.

The International Association of Machinists (IAM) is asking its members to approve Boeing’s watered-down proposal in a vote on Monday. Their members went on strike on September 13.

“There is a point in every negotiation and strike where we have extracted all we can by negotiating and giving up labor,” IAM District 751 said Thursday. “We are at this stage now and risk a regressive or lesser proposal in the future.”

Boeing’s new offer includes 38% pay increase over four years

The new offer includes a total wage increase of 38% over four years, up from the previous offer of 35%. That figure “represents 43.65% over the life of the agreement,” the union said.

The new proposal would also give workers the option of a one-time ratification bonus of $12,000; 401(k) contribution; or “a combination of both,” the union said.

“We encourage all of our employees to learn more about the improved proposal and vote on Monday, November 4,” Boeing said.

Boeing takes steps to stop cash drain from strike

The strike has been painful for Boeing, which is raising billions of dollars to stem the cash drain. Chief executive officer (CEO) Kelly Ortberg, who took office in August, said in a memo to employees earlier this month that the plane maker plans to lay off about 10% of its workforce, or 17,000 workers, “in the coming months.” and is delaying the launch of its first 777x jet.

Boeing shares, which rose 2% in premarket trading, had lost more than 40% of their value this year through Thursday’s close.