Tentative Agreement Reached in Boeing Strike; Vote Scheduled for Wednesday

A tentative agreement has been reached to potentially end the five-week-long strike at Boeing, a major aerospace manufacturer, according to an announcement made by the union representing the striking workers early Saturday. This tentative deal comes as significant news for Boeing, which has faced production challenges due to the industrial action.

The deal requires ratification by a majority of the International Association of Machinists’ rank-and-file members, who are expected to vote on Wednesday. Previously, union members had nearly unanimously rejected an earlier agreement, leading to the first strike at Boeing in 16 years. The union has expressed that this new offer merits consideration by its members.

The key highlights of the proposal include a 35% wage increase over the four-year duration of the contract. The proposal also features enhanced contributions from Boeing to the workers’ 401(k) plans, although it does not restore pensions cut a decade ago, an issue of discontent among many union members.

Acting U.S. Secretary of Labor Julie Su has been credited with mediating the negotiations between the union and Boeing management, similar to her role in resolving a recent strike at ports along the East and Gulf Coasts. Despite the progress, Boeing has not yet responded to requests for comment from CNN.

The ongoing strike has reportedly cost Boeing approximately $1 billion per month, exacerbating the company’s financial woes, which have been mounting since the crises following the grounding of its 737 Max aircraft. Boeing’s production of commercial jets has been significantly disrupted as the strike halts operations, impacting the delivery and sale of its planes.

The union’s announcement stopped short of explicitly endorsing the deal. It remarked that the offer “includes several key improvements” and warranted presentation to the members. Previously, the leadership endorsed a plan that was overwhelmingly rejected, which included a 25% wage increase and a $3,000 signing bonus compared to the $7,000 bonus in the current offer.

Boeing has faced a challenging period marked by several setbacks since two fatal crashes of its 737 Max models resulted in substantial operational and financial repercussions. The company is expected to report substantial losses for the recent quarter, largely accrued before the start of the strike.

This developing story will be updated as new information becomes available.