Boeing and the Machinists union, which represents 33,000 of its West Coast employees, have reached a tentative agreement that could avert a strike planned for this Friday. The deal must still be approved by union members, but leadership expressed confidence, stating that it addresses key concerns. The International Association of Machinists and Aerospace Workers praised the agreement, noting that it fulfills the union’s objectives.
Boeing reaches tentative contract agreement with machinists union https://t.co/Tcj1Aj4bVX
— kimco2024 (@kimberlyhow47) September 8, 2024
The tentative contract offers several significant benefits, including a 25% wage increase over the next four years, improved 401(k) contributions, reduced employee health insurance contributions, and more time off. Boeing emphasized that this represents the largest pay raise for union members in the company’s history. Stephanie Pope, CEO of Boeing’s commercial airplane unit, said the deal was crafted to ensure both workers and their families are well-supported.
One of the most critical provisions of the deal is increased job security. Boeing has committed to building its next new airplane at a union-represented plant in the Puget Sound region. In the past, Boeing had considered shifting production to nonunion facilities, such as its South Carolina plant where the 787 Dreamliner is manufactured. Previous union negotiations involved concessions to avoid losing production of key jets like the 737 Max and 777X to nonunion plants.
The tentative agreement covers workers at Boeing’s Seattle-area factories and 1,200 employees at its parts plant in Portland, Oregon. A vote is scheduled for Thursday, and although a “no” vote could result in a strike, union leadership is recommending members approve the deal.
Machinists union agrees tentative contract deal with Boeing https://t.co/Cjf8MnNhoC via @seattletimes
— Kraig Peck (@peck_kraig) September 8, 2024
Boeing has experienced significant financial setbacks over the past five years, including the grounding of its 737 Max planes following two fatal crashes. The company’s struggles were compounded by the pandemic, which caused a sharp decline in air travel and financial difficulties for Boeing’s airline customers. Safety concerns also resurfaced in January when a door plug blew off a 737 Max, highlighting ongoing quality control issues. Since 2019, Boeing has reported operating losses totaling $33.3 billion, with losses expected to continue through this year. The company is also at risk of having its debt downgraded to junk bond status due to the large amount of borrowing needed to cover its losses.
Boeing’s financial difficulties gave the union significant leverage during negotiations, which the union leadership used to secure favorable terms. Jon Holden and Brandon Bryant, the presidents of Boeing’s two union locals, noted that while they didn’t get everything they wanted, the contract is the best in the union’s history. They credited the solidarity of the union members for the strength of the agreement.
Boeing executives had acknowledged the union’s upper hand in negotiations, with former CEO Dave Calhoun signaling a willingness to avoid a strike, despite the company’s financial struggles. Kelly Ortberg, who took over as CEO in early August, prioritized rebuilding relations with the union and emphasized the importance of avoiding a work stoppage. The tentative agreement represents a significant step toward securing labor peace at Boeing, as the company seeks to stabilize after years of setbacks.
In the meantime, union members will vote on the deal Thursday, with a recommendation from leadership to approve the historic contract.
Key Points
:i. Boeing and the Machinists union have reached a tentative agreement that could avoid a strike, including a 25% raise over four years.
ii. The deal offers enhanced job security, with a commitment to build a new airplane at a union-represented plant in the Puget Sound region.
iii. Boeing has faced financial difficulties in recent years, including $33.3 billion in operating losses since 2019.
iv. The union had significant leverage in negotiations due to Boeing’s financial struggles, securing the best contract in its history.
v. Union members will vote on the agreement this Thursday, with leadership recommending approval.
Lap Fu Ip – Reprinted with permission of Whatfinger News