Boeing and the Machinists union have reached a tentative deal that could avoid a strike set to start that Friday. The deal would need approval from union members who build commercial jets, but union leadership praised the deal as achieving their goals. The agreement includes a 25% raise over four years, improved 401(k) contributions, reduced health insurance costs, and increased time off, marking Boeing’s biggest pay raise for union members. Increased job security is also promised by building the next new airplane at a union-represented plant in the Puget Sound region.
The contract covers production workers at Boeing’s Seattle-area factories and a parts plant in Portland, Oregon. Rank-and-file members will vote on the tentative agreement, with a no vote possibly leading to a strike. Despite Boeing having a series of setbacks in recent years, including the grounding of the 737 Max and revenue losses due to the pandemic, union leadership is recommending members vote in favor of the agreement. Boeing has faced financial challenges and is at risk of having its debt downgraded to junk bond status due to borrowing to cover losses.
Boeing’s problems left it in a weak position to deal with striking workers for the first time in 16 years. Financially, the company struggled due to self-inflicted missteps, with union leaders utilizing their leverage to negotiate for significant improvements in the contract. Company executives acknowledged the union’s power in negotiations, with former CEO Dave Calhoun indicating a willingness to avoid a strike and treat employees well in the process. The union’s unity and strength led to the best contract they have ever had, according to union leaders.
The deal with the Machinists union comes as a contrast to other major companies that reached lucrative union agreements in the past year. Companies like UPS, General Motors, Ford, and Stellantis reported record earnings ahead of talks, unlike Boeing, which has faced significant financial losses. The union’s success in negotiations with Boeing showcases their ability to leverage the company’s financial struggles to achieve favorable terms for their members. Despite Boeing’s challenges, the company and the union were able to reach an agreement that addresses various worker priorities, including raises, benefits, and job security.
The agreement between Boeing and the Machinists union reflects the shifting dynamics in labor negotiations due to the company’s financial troubles. Boeing’s determination to avoid a strike and willingness to treat employees well in negotiations contributed to the successful outcome of the talks. The agreement not only provides significant improvements for union members but also demonstrates the importance of unity and strength in achieving favorable terms in labor negotiations. With both parties recognizing the need to work together amidst financial challenges, the agreement represents a landmark deal that addresses key issues for workers at Boeing.
