Boeing and its largest union announced on Sunday that they have reached a tentative agreement on a new contract, which, if ratified, will prevent a strike that could have halted aircraft production by the end of the coming week. The agreement, covering 33,000 workers represented by the International Association of Machinists and Aerospace Workers, includes a 25% pay raise over the four-year term of the contract. Average wages are expected to rise by 33% due to seniority step increases, though this falls short of the union’s initial 40% demand.
In response to a key union request, Boeing agreed to build its next aircraft in Washington state, potentially employing union members. The contract also includes $3,000 lump sum payments for workers and a reduction in their share of health care costs. Additionally, Boeing will make new 401(k) contributions of up to $4,160 per employee. However, the union's demand to restore the defined-benefit pension plan, which was eliminated in 2014, was not met.
Jon Holden, president of IAM District 751, described the proposal as “the best contract we’ve negotiated in our history,” acknowledging that while not all demands were met, the agreement represents a significant achievement. The union’s bargaining committee is recommending ratification of the contract.
Stephanie Pope, president of Boeing’s commercial airplanes division, highlighted that the proposed contract features the company’s largest-ever general wage increase and promises job security by committing to build Boeing’s next airliner in the Puget Sound area.
* The Associated Press contributed to this article.