new York
CNN
—

A tentative agreement had been reached to end the five-week strike at troubled aircraft manufacturer Boeing, the union told its 33,000 striking members early Saturday.

The agreement still needs to be ratified by a majority of the International Association of Machinists' rank-and-file members before it can take effect and workers can return to work. The union will vote on it on Wednesday.

The strike was a major blow to an already struggling company that, despite recent problems, remains a key component of the U.S. economy. Boeing is America's largest exporter, contributing an estimated $79 billion annually to the economy. Boeing directly and indirectly supports 1.6 million jobs at 10,000 suppliers in all 50 states. The strike came just a month after new CEO Kelly Ortberg took office, saying she wants to “reshape” the troubled relationship between the union and the company.

The rank and file already almost unanimously rejected an earlier tentative agreement, triggering the company's first strike in 16 years. However, the union's statement said the new offer was worth putting to members for a vote.

The union said the offer would increase wages by 35% over the four-year contract period. It also increases company contributions to members' 401(k) plans, but does not restore the traditional pension plan that was taken away from union members a decade ago. Many union members had expressed anger at the loss of pensions.

The union credited Acting Labor Secretary Julie Su with brokering the deal through indirect discussions between the union and management. Su had also negotiated ending a strike by the International Longshoremen's Association at dozens of ports on the East and Gulf Coasts earlier this month, following three days of demonstrations earlier this month.

Boeing did not immediately respond to CNN's request for comment.

The company lost an estimated $1 billion per month due to the strike, in addition to its ongoing losses, according to an estimate by Standard & Poor's. The company has also announced plans to cut 10% of its global workforce, or about 17,000 of its 171,000 workers. The strike has halted production of almost all of its commercial aircraft, and the company receives most of the money from sales of its aircraft upon delivery.

But the company's problems go far beyond the effects of the strike. The company has been battling one setback after another for more than five years, since two fatal crashes of its best-selling 737 Max in late 2018 and early 2019 led to a 20-month grounding of the plane. Since then, the company has reported more than $33 billion in losses, and it has already said it will report another big loss on Wednesday for the just-ended quarter, most of which occurred before the strike began on September 13 is.

The union's statement did not endorse the offer that members will vote on. It simply states that it “includes several important improvements” and that “it warrants presentation to members and is worthy of your consideration.” Union leadership had approved the previous tentative agreement, calling it the best deal ever reached with Boeing, but found the rank and file rejected it by an overwhelming 95% of members.

This rejected offer would have increased wages by 25% over the life of the contract. It also would have brought minor improvements to 401(k) contributions and just a $3,000 signing bonus. This offer includes a $7,000 signing bonus.

For more than five years, Boeing has been dealing with one problem after another, from the embarrassing to the tragic and all financially ruinous. The company has had two fatal crashes, a 20-month grounding of its best-selling plane and numerous federal investigations into the quality and safety of its planes, sparked by a torn door plug on an Alaska Airlines flight in January. The plane leaves a Boeing factory without the screws required for fastening. She has agreed to plead guilty to deceiving the Federal Aviation Administration in the initial certification of the 737 Max.