HearaldNet.com reports that Boeing has made its second full contract offer to the Machinists union, agreeing to withdraw its request to eliminate pension for new employees.

Boeing wants to avoid a labor strike at a critical point in the manufacturing of its new 787 Dreamliner. Boeing now has eliminated three of the four topics the Machinists identified as "strike" issues. The company offered pay increases of 9% over three years and a 5% lump sum payment in the first year.

The company also withdrew some outsourcing language requested by the Machinists. The company previously withdrew its request to divide out the Wichita bargaining unit.

However, Boeing still seeks to eliminate early retiree medical benefits for new Machinists; that's an issue over which the Machinists have said they'll strike.

The union waged a 28-day strike three years ago. It'll vote on Boeing's final offer on Sept. 3.