Boeing Union Leaders Announce Tentative Contract Agreement
On Saturday, leaders of Boeing’s largest union revealed that they have successfully negotiated a “proposed agreement” for a new contract, setting the stage for a pivotal vote that could potentially bring an end to a prolonged and costly strike. The International Association of Machinists and Aerospace Workers (IAMAW) shared this update on their website, stating that the deal was reached with the assistance of Acting U.S. Secretary of Labor Julie Su. The union emphasized that this proposal “warrants presenting to the members and is worthy of your consideration.”
The strike, which began on September 13, involves over 33,000 union members primarily engaged in the production of commercial airplanes in the Seattle area. It has severely impacted Boeing, a company already grappling with significant financial challenges. In the immediate aftermath of the walkout, Boeing was compelled to implement cost-cutting measures, including temporary furloughs affecting tens of thousands of its white-collar workforce.
Details of the proposed contract, reached after several rounds of negotiations that faced hurdles, indicate raises totaling 35 percent over the four-year duration of the agreement. This figure, while an increase from previous offers, falls short of the union’s initial demand for a 40 percent increase. Additionally, the proposal includes a one-time bonus of $7,000 contingent upon the ratification of the deal and the reinstatement of performance bonuses that were previously slated for elimination.
The union has scheduled a vote on this proposal for Wednesday. In response to the developments, Boeing issued a statement expressing that they “look forward to our employees voting on the negotiated proposal.”
If approved, this new contract would replace the one established in 2008, following a two-month strike. Boeing later disclosed in their securities filings that the previous strike led to a revenue decline of approximately $6.4 billion, as the company fell short of delivering 104 aircraft as planned that year.