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Boeing strike temporarily averted as union weighs modified contract offer

A modified contract has been offered by the company Saturday afternoon.

ST. LOUIS — A strike at Boeing Co. (NYSE: BA) in the St. Louis area scheduled to start Monday has been temporarily averted, as members of the International Association of Machinists and Aerospace Workers District 837 are set to vote Wednesday on a modified contract offer from the company.

The modified offer resulted from a bargaining session with Boeing and the union that lasted from about 4:30 p.m. to 9 p.m. Friday. It followed a mediation session that ended without a resolution.

The modified contract offer from Boeing consists of two parts:

* an $8,000 lump-sum payment to employees on the July 25 payroll. Employees can defer up to 100% of that lump sum into the company's 401(k) plan.

* Boeing is withdrawing its 401(k) savings proposal that members voted down on July 24. As a result, Boeing will continue to make 4% contributions of the employee's base rate and incentive pay into his or her 401(k) account without that employee being required to make a contribution. The company also will continue the 75% match on the first 8% of an employee's contribution. The previous proposal was 2% each in 2023 and 2024 and a 100% match on the first 10% of an employee's contribution.

A Boeing spokesperson said in an email: "This new offer builds on our previous strong, highly competitive one and directly addresses the issues raised by our employees. We are hopeful they will vote yes on Wednesday."

To read the full story, visit the St. Louis Business Journal website.


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