Boeing and the International Association of Machinists and Aerospace Workers (IAM) representing 33,000 or the aerospace manufacturer’s workers reached a tentative agreement to end a six-week strike that has halted production of aircraft models.
The new contract proposal — negotiated with assistance from the White House — includes a 35% wage increase over four years and $7,000 ratification bones, according to a Oct. 19 IAM news release.
The union plans to vote on the proposal on Oct. 23 — the same date Boeing is set to report its 2024 third quarter financial results.
The strike, which began on Sept. 13, has forced Boeing to halt assembly lines for its 737 Max, 767 and 777 aircraft. Earlier in October, the company said it was moving forward with plans to cut 10% of its workforce and has begun raising capital to stabilize its finances — including a $10 billion credit line and potential debt issuance of up to $25 billion.
Boeing’s recent offer addresses some of the key concerns raised by striking workers but does not restore the traditional pension plan, IAM said. Boeing will increase contributions to 401(k) plans and provide a one-time contribution of $5,000 to eligible workers’ retirement accounts. The offer also retains performance bonuses that Boeing had previously sought to eliminate.
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