Boeing has reached a tentative agreement with its machinists union on September 8, 2024. Some 33,000 workers based in the US west coast are represented by the International Machinists Union (IAM) District 751 & W24.
This is the first full negotiation between Boeing and IAM 751 & W24 in 16 years.
"After 16 years, we finally got back to the bargaining table to fight for what you deserve and bargain the full agreement," the union's negotiating team read in a statement.
The new deal struck with the union will see a 25% general wage increase for all employees over the four year contract, with overall wages increasing by 33% due to seniority step increases. This includes an immediate 11% pay increase. The union had originally called for a 40% pay increase.
The statement continued: "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."
Interestingly, Boeing also committed to building its next new aircraft in Washington state as part of the deal.
"Boeing's roots are here in Washington," Boeing Commercial Aircraft CEO Stephanie Pope said in a video message to staff. "It's where generations of workers have built incredible airplanes that connect the world... as part of the contract, our team in the Puget Sound region will build Boeing's next airplane.
"This would go along with our other flagship models, meaning job security for generations to come."
Members of the union will vote on the new deal on September 12. If it is ratified, a $3,000 lump sum payment will be included in the deal. It also includes lower cost share for improved health care and a free primary care benefit. Boeing also promises a better work-life balance with new floating holiday, reduced mandatory overtime and 12 weeks of paid paternal leave for its machinists.
"Let's make a commitment to come together on this new contract so we can continue over recovery and build a bright future together," concluded Pope.
The negotiations had been set to expire on September 13, and a potential strike had loomed ahead for Boeing. With the new agreement, the OEM has averted the crisis.