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The International Association of Machinists and Aerospace Workers said an overnight negotiating session would lead to a new Boeing proposal, which workers would vote on Wednesday on whether to accept it.

Under the new contract proposal, employees can choose to receive a lump sum payment of $8,000 (minus withholding tax) upon ratification or deposit the full amount into a 401(k) plan. The company is withdrawing its revised 401(k) match proposal.

In a statement on Saturday, Boeing said, “This new proposal builds on our previous strong and highly competitive proposal and directly addresses issues raised by our employees. I hope that,” he said.

A tentative agreement does not necessarily mean the risk of a strike is over. Many companies reached agreements with union leaders, but common workers refused the proposed contracts and were forced to go on strike. 10,000 members of the union went on strike after rejecting a tentative deal. I’m back to work.

Union members at Boeing’s three defense plants overwhelmingly rejected an earlier offer from the company a week ago.

Workers at three factories in Missouri and Illinois build F-15s, F-18s, T-7A trainers and MQ-25 tanker drones. Boeing said he had a contingency plan in place in the event of a strike on July 24. But CEO Dave Calhoun told investors on a conference call this week that a strike would delay deliveries to military customers.

The stalemate began after unions criticized Boeing’s 401(k) payments in contracts and workers rejected the offer.

“Boeing used to take pensions from members, but now the company is unwilling to adequately compensate members’ 401(k) plans,” the union said on July 24.

Boeing’s previous 401(k) proposal on Sunday included automatic contributions of 2% for 2023 and 2024, plus corporate matching of employee contributions of up to 10% of a worker’s salary. rice field. Boeing was also proposing a $3,000 ratification bonus.

Boeing currently offers a 4% corporate contribution and a 75% match for the first 8% of employee contributions.

Boeing has posted significant losses each year for the past three years, with net losses exceeding $18 billion since the beginning of 2019. But those losses were mostly related to the commercial aviation business hit by his 20-month grounding of the 737 Max. It was due to his two fatalities starting in March 2019 and the sharp drop in demand for air travel due to the pandemic.

The company’s defense, space and security business units have generated $1.5 billion in annual profits for the past two years. However, Boeing reportedly lost 20% in the defense business in the first quarter of this year after a number of special charges, including a $660 million charge related to the refurbishment of two 747 jets that will be used as the new Air Force One. He reported a loss of $929 million. Boeing posted a profit of just $71 million in the second quarter.

— Chris Isidore of CNN Business contributed to this report

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