Boeing, which replaced the pension with a 401(k) plan, had resisted attempts to restore the pension plan. "It does come down to potentially exploring other defined-benefit options, which we are willing to do," said IAM president Joh Holden, at a press conference.

Workers will also receive a 38 percent pay raise over the next four years, a $12,000 ratification bonus, reinstated performance pay, and a 100 percent 401(k) match up to 8 percent of pay.

The contract does not include a renewal of the workers' pension plan, but Boeing is offering a $215 per year pension multiplier for those vested in the Boeing Co. Employee Retirement Plan.

The ratification bonus combines the previous $7,000 ratification bonus offer and a $5,000 lump sum contribution into workers' 401(k) plans. Members can choose how the total bonus amount is received—in a participant's paycheck, as a contribution to their 401(k), or a combination of both.

Last week, the union rejected a proposal that offered a 35 percent pay hike and increased contributions to the company's 401(k) plan, as well as Boeing's offer to make a one-time contribution of $5,000 to 401(k) plans and to match 100 percent of employee contributions, up from 75 percent, on the first 8 percent of a worker's pay. Boeing also offered to increase pension payouts for the 42 percent of IAM members who are still part of the pension plan, allowing a worker with 20 years of employment to receive a pension payment of about $2,100 a month, up from $1,900.

"There is no scenario where the company reactivates a defined-benefit pension for this or any other population," Boeing said in a previous statement. "They're prohibitively expensive, and that's why virtually all private employers have transitioned away from them to defined-contribution plans."

The IAM union has been in communication with the Department of Labor "in an effort to spearhead getting back to the table," according to the union website.

Acting Secretary of Labor Julie Su issued the following statement yesterday regarding the strike: "President Biden and I congratulate the 33,000 machinists at the Boeing Company on their historic new collective bargaining agreement. This agreement, with its record wage increases, retirement improvements, guaranteed productivity bonuses, and commitments by the company to keep production in Puget Sound, demonstrates what is possible when workers have a real voice on the job …

"This agreement proves yet again that collective bargaining works. It is one of many historic wins for working people that are reshaping and strengthening American industries. With this new agreement ratified, Boeing and its machinists can now move forward to build and strengthen their partnership, which will be critical to Boeing's success."

From: BenefitsPRO