Virginia, USA: On Saturday (Oct 19) morning, the striking machinists union announced that Boeing presented a new contract offer, featuring a larger wage increase and additional incentives, in a bid to end the five-week strike that has stalled the company’s operations.

The proposed wage increase closely aligns with the union’s original demand of a 40pc raise over four years.

Around 33,000 of Boeing's unionised West Coast workers, most in Washington state, have been on strike since Sept. 13. The work stoppage has halted production of the planemaker's best-selling 737 MAX and its 767 and 777 widebodies, putting added pressure on the company's already fragile finances.

The latest offer includes a $7,000 ratification bonus, reinstated incentive plan and enhanced contributions to workers' 401(k) retirement plans including a one-time $5,000 contribution plus up to 12 per cent in employer contributions, International Association of Machinists and Aerospace Workers Local 751 said.

Two senior union officials in Seattle told news agency they believed the members would vote in favor of the deal, although they expected a backlash from older workers who were demanding a defined-benefit pension be reinstated by Boeing.

The union said on Saturday in a social media post that with the help of acting US Secretary of Labor Julie Su they had received a "negotiated proposal" and told striking workers it "is worthy of your consideration."

Earlier in the week, the US Chamber of Commerce pleaded on social media site X for the two sides to reach an agreement that would put an end to the stoppage, which is rippling through the industry, leading Boeing suppliers like Spirit AeroSystemsSPR.Nto announce furloughs.

-B