Boeing, Union Reach Tentative Deal to End Strike

Boeing and the union representing its striking machinists have reached a tentative agreement that union leaders say should be presented to members for a ratification vote, paving the way for a potential end to the more than month-long strike.
“With the help of Acting U.S. Secretary of Labor Julie Su, 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 International Association of Machinists and Aerospace Workers Local 751 said in a statement on Oct. 19.
While Boeing’s latest proposal makes a number of concessions, it does not include a dedicated pension plan for new members, which was a key demand in previous negotiations. Instead, it emphasizes enhanced 401k contributions, including a 100 percent company match up to 8 percent of worker earnings and a one-time $5,000 contribution for eligible members.
The union said it plans to hold a vote on the proposal on Oct. 23 that, if approved by a simple majority of members, will cement the tentative deal into a contract and end the strike.
Union leaders said they are still finalizing the strike settlement agreement and, along with additional contract details, will present it to members for their consideration ahead of the planned Oct. 23 vote.
“The future of this contract is in your hands,” they said.
The strike began at a challenging time for Boeing, which has been trying to ramp up production after a series of safety incidents and increased regulatory scrutiny in recent years. Analysts have warned that a prolonged strike could lead to lasting financial impacts, while credit-rating agencies have warned of potential ratings downgrades.
Boeing attributed the impacts to charges related to certain commercial and defense programs, as well as the ongoing strike. The company now projects revenues of $17.8 billion, an operating cash flow deficit of $1.3 billion, and a loss of $9.97 per share.