SEATTLE, Washington: A union representing nearly 2,500 employees at three Boeing defense locations in the St. Louis area canceled a strike that was set to begin this week, stating they will instead vote on a revised contract offered by the company.

An overnight bargaining session led to the new Boeing offer and workers will vote whether to accept it, said the International Association of Machinists and Aerospace Workers (IAM).

Under the new offer, the company is dropping its revised 401(k) match proposal, and employees can instead opt to receive an $8,000 lump sum payment or can choose to have the entire amount deposited in a 401(k) plan.

In a statement, Boeing said, "This new offer builds on our previous strong, highly competitive one and directly addresses the issues raised by our employees. We are hopeful they will vote yes."

Boeing said on 24th July that it was activating a contingency plan in the event of strikes at the three plants in Missouri and Illinois which build the F-15 and F-18 fighter jets, as well as the T-7A trainer.

The standoff began after the IAM criticized Boeing's 401(k) payments in the contract and workers rejected the Boeing offer.

On 24th July, the IAM said, "Boeing previously took away a pension from our members, and now the company is unwilling to adequately compensate our members' 401(k) plan."

Boeing provides a 4 percent company contribution and a 75 percent match on the first 8 percent of an employee contribution.