On Saturday, Boeing and the union representing its machinists announced that they have successfully come to a new agreement, potentially bringing an end to over a month of strikes that have disrupted aircraft manufacturing.
The members of the union are set to cast their votes on the new proposal this Wednesday.
This revised agreement includes a 35% wage hike spread over four years, an increase of $7,000 in the signing bonus, a guaranteed minimum for annual bonuses, and enhanced 401(k) contributions.
Acting U.S. Labor Secretary Julie Hsu met with both Boeing and union representatives earlier this week and remarked, “With the assistance of Acting U.S. Secretary of Labor Julie Su, we have received a negotiated proposal and resolution to halt the strike that deserves to be presented to our members and is worthy of consideration,” stated the International Machinists and Aerospace Workers Association District. The strike began on September 13 when over 30,000 mechanics voted overwhelmingly against a preliminary agreement that offered a 25% wage increase over four years. Following this, Boeing proposed a softer deal, which the union dismissed, indicating that negotiations had not reached a satisfactory conclusion.
Boeing expressed eagerness for its employees to vote on the negotiated agreement. The company is also grappling with financial pressures stemming from an ongoing safety issue linked to a serious door plug explosion on one of its 737 MAX aircraft, alongside initiating various other programs this year.
Earlier this month, Boeing reported considerable losses in both its commercial and defense sectors and revealed plans to seek approximately $5 billion in compensation. Should the deal gain approval on Wednesday, coinciding with the release of Boeing’s comprehensive financial results, it would mark a significant win for new CEO Kelly Ortberg, who stepped into the role in August with the goal of steering the company back to success.
On October 11, Ortberg disclosed that the company would be reducing its workforce by 10% and that the production of 767 aircraft would cease once current orders are fulfilled by 2027.
