Boeing makes 38% pay rise offer to striking workers

Striking Boeing workers are set to vote on a new offer from the aviation giant, which includes a 38% pay rise over the next four years.

The International Association of Machinists and Aerospace Workers (IAM) union, which represents more than 30,000 striking workers, has endorsed the offer and says it will hold a ballot of its members on Monday.

The walkout started on 13 September, leading to a dramatic slowdown in production and deepening a crisis at the firm.

Two previous offers by Boeing have been rejected by the striking workers who have demanded a 40% pay increase.

As well as the proposed pay rise, the latest offer includes a $12,000 bonus (£9,304) for the workers if a deal is reached, up from $7,000 in the previous offer.

"It is time for our members to lock in these gains and confidently declare victory," an IAM social media post said.

"We believe asking members to stay on strike longer wouldn't be right as we have achieved so much success."

"We encourage all of our employees to learn more about the improved offer and vote on Monday, November 4," Boeing said in a statement.

Boeing shares rose 2.7% in after-hours trading in New York after the news was announced.