Boeing Avoids 30,000-Strong Machinist Strike with New Agreement

Boeing and its largest union have recently reached an agreement on a new contract, aimed at averting a potential strike that could have disrupted aircraft production. This deal is contingent upon union members ratifying it before midnight on Thursday, Pacific time, which is when the strike would have otherwise commenced.

Under the terms of the proposed contract, the 33,000 workers represented by the International Association of Machinists and Aerospace Workers are set to receive pay raises of 25 percent over the four-year duration of the contract. Consequently, average wages are expected to rise by 33 percent due to seniority step increases. While this is less than the 40 percent demanded by the union during negotiations, the company has acquiesced to a crucial union demand to construct its next aircraft in Washington state, likely featuring union members.

Additionally, workers will receive $3,000 lump sum payments and a reduced share of healthcare costs, with the company also committing to new 401(k) contributions of up to $4,160 per employee. However, the reinstatement of a defined-benefit pension plan, abolished in 2014, remains unfeasible. Jon Holden, president of IAM District 751, lauded the proposal as the most favorable contract in the union’s history.

Boeing’s commercial airplanes division president, Stephanie Pope, emphasized the company’s largest-ever general wage increase and highlighted the agreement to build the next aircraft in the Puget Sound area as a guarantee of sustained job security. The fate of the contract now rests in the hands of union members, who are urged to vote on its ratification before the imminent deadline. Failure to do so may precipitate a strike, which would not only hamper Boeing’s financial recovery efforts but also disrupt its production flow and cash inflow significantly.