Boeing, union reach tentative agreement to halt strike

A tentative agreement has been reached between Boeing and the roughly 33,000 machinists that went on strike last month, the union announced Saturday.

"We are finalizing the strike settlement agreement, which will be completed soon, along with additional contract details to provide you with a clear understanding of the offer," the International Association of Machinists (IAM) said in a post on social platform X.

The latest proposal from Boeing includes a 35 percent wage increase over four years and reinstates an incentive pay plan, with a guaranteed minimum annual payout of 4 percent. The union, which represents roughly 600,000 active and retired machinists, said a vote will be held next week for the latest contract negotiations.

Company contributions to workers' 401(k) plans would also increase with the deal, though it does not restore the original pension plan from a decade ago, CNN reported.

"The fact the company has put forward an improved proposal is a testament to the resolve and dedication of the frontline workers who’ve been on strike – and to the strong support they have received from so many," IAM said in a press release.

The union added that the workers will "ultimately decide if this specific proposal is sufficient."

"Like many workers in America, IAM members at Boeing have sacrificed greatly for their employer, including during the pandemic when these workers were reporting to the factory as executives stayed at home," they wrote. "These workers deserve to have all of those sacrifices recognized."

Boeing implemented cost-saving measures — including a hiring freeze, temporary furloughs, leadership pay cuts and halted payments to many lobbying firms in Washington — shortly after the strike began on Sept. 13.

The plane manufacturer made what it called its "final" offer to IAM late last month.

IAM, in their post online, also thanked Labor Secretary Julie Su for her role in negotiations.

"With the help of Acting U.S. Secretary of Labor Julie Su, we have received a negotiated proposal and resolution to end the strike, and it warrants presenting to the members and is worthy of your consideration," the union wrote.

Boeing, when reached for comment, said "we look forward to our employees voting on the negotiated proposal."

The strike marked the latest hiccup for the company after it was thrust into the national spotlight earlier this year due to perceived lapses in safety. The Federal Aviation Administration announced Friday that it will open a review into protocols at the company.