A breakthrough has been made in the Boeing machinists strike‚ with a tentative deal reached after a month of negotiations. The International Association of Machinists and Aerospace Workers which represents 33‚000 workers announced the agreement on 10/19/2024.
The proposed deal includes a 35% general wage increase improved retirement benefits and a $7‚000 signing bonus. Union members are set to vote on the agreement on 10/23/2024 coinciding with Boeings scheduled Q3 earnings announcement.
Acting U.S. Secretary of Labor Julie Su played a key role in facilitating the negotiations. The union stated‚ “We have received a negotiated proposal and resolution to end the strike and it warrants presenting to the members and is worthy of your consideration“
The strike which began in mid-September 2024 has caused significant disruption to Boeings operations. The company had to halt production of some of its top-selling jets and furlough thousands of workers. Some analysts estimated Boeings losses at up to $1 billion per week while others calculated it at $1 billion monthly.
This labor dispute comes at a challenging time for Boeing. The company has been grappling with regulatory issues and financial losses for the past five years – losing over $25 billion. A recent incident involving a 737 Max jet in January 2024 led to federal investigations and production restrictions.
The last strike by IAM members occurred about 16 years ago‚ lasting 54 days. While the current deal – if approved – may help reset union-management relations its unclear if it will fully address long-standing worker frustrations with the companys negotiating tactics