Boeing Reaches Tentative Agreement with Unions to Avert Strike

Boeing Reaches Tentative Contract Deal with Unions

Boeing announced on Sunday that it has reached a tentative agreement with unions representing over 33,000 of its workers. This crucial development comes as the company aims to avert a potential strike that could have severely disrupted production, especially as the current contract is set to expire later this week.

The proposed contract, pending approval from union members, marks the first comprehensive agreement between Boeing and its unions in 16 years. It promises substantial raises of 25 percent over the four-year duration of the contract. While this figure is below the 40 percent raise initially sought by the unions, it nevertheless includes several key victories, such as enhancements to health care and retirement benefits, along with a commitment to manufacture the company’s next commercial airplane in the Seattle and Portland regions.

If ratified, this agreement would address one of the most urgent challenges facing Boeing’s newly appointed CEO, Kelly Ortberg, who took the helm just a month ago. Ortberg, previously the leader of aerospace supplier Rockwell Collins, steps into a company grappling with significant issues following a panel detachment incident involving a 737 Max jet in January. Although there were no serious injuries, this event reignited longstanding concerns regarding the quality and safety of Boeing aircraft, particularly in light of two tragic crashes involving Max jets five years prior. It also illuminated the company’s ongoing struggles with quality control.

The leadership of the unions—District 751 and the smaller District W24 of the International Association of Machinists and Aerospace Workers—has encouraged their members to endorse the deal. In a joint statement, Jon Holden, president of District 751, and Brandon Bryant, president of District W24, remarked, “Negotiations are a give and take, and although there was no way to achieve success on every single item, we can honestly say that this proposal is the best contract we’ve negotiated in our history.”

• The unions primarily represent production workers involved in the construction of both commercial and military aircraft.
• District 751 is Boeing’s largest union, encompassing the majority of workers covered by the current and proposed contracts.
• Many of these workers reside in the Seattle area, which is the hub of Boeing’s commercial airplane manufacturing.