A tentative deal ending the five-week-long strike at Boeing has been reached, according to CNN and Reuters. However, the deal needs to be ratified on Wednesday, October 23, 2024, by a majority of the rank-and-file membership of the International Association of Machinists before it takes effect and workers can return to their jobs.
Members almost unanimously rejected a previous contract offer in September. However, the International Association of Machinists and Aerospace Workers Local 751 said in a social media post that, with the help of Acting U.S. Secretary of Labor Julie Su, they had received a proposal, telling striking workers it "is worthy of your consideration."
The new agreement includes a 35 percent wage increase over the four-year contract, a $7,000 ratification bonus, and a reinstated incentive plan. It will also increase company contributions to members' 401(k) plans, though it will not restore the traditional pension taken away from union members in 2014.
The company says it has been losing an estimated $1 billion a month due to the strike, on top of its ongoing losses, according to an estimate from Standard & Poor’s. Boeing also announced plans to cut 10 percent of its global staff, or about 17,000 of its 171,000 workers. The strike has halted production of nearly all of its commercial jets, affecting its ability to get paid, as the funds are received upon delivery.
In addition, Boeing has been struggling with multiple setbacks for more than five years ever since two fatal crashes of its 737 Max in late 2018 and early 2019 led to a 20-month grounding of the plane. It has reported losses of more than $33 billion since that time, and it has already said it will report another huge loss on October 23 for the just-completed quarter, most of which took place before the start of the strike on September 13.
Boeing has not responded to requests for comments.
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