Boeing and Union Strike Deal to Avoid Production Shutdown

Boeing and its largest union have reached a tentative agreement, potentially avoiding a strike that could halt aircraft production. The new contract offers pay raises of 25% over four years, aligned with seniority step increases. Additionally, Boeing agreed to build its next plane in Washington state.

Boeing and its largest union announced Sunday that they reached a tentative agreement on a new contract that if ratified could avert a strike. The potential strike, expected to shut down aircraft production, now hinges on union members' approval by late Thursday night Pacific time.

Under the proposed four-year contract, Boeing's 33,000 workers, represented by the International Association of Machinists and Aerospace Workers, will receive a 25 percent pay raise. Average wages could rise by 33 percent with seniority step increases. While this is less than the 40 percent initially demanded by the union, the company conceded to a crucial union requirement to manufacture its next aircraft in Washington state.

Additionally, workers will receive USD 3,000 lump sum payments and a lower share of health care costs. The contract's approval remains contingent on its ratification by union members, pending a deadline later this week.

(With inputs from agencies.)