Boeing Strikes Tentative Deal with Union to Avoid Strike

Boeing has reached a tentative agreement with a union representing over 32,000 workers in the U.S. Pacific Northwest. If approved, the four-year contract includes a 25% wage increase and commitments to build the next commercial airplane in the Seattle area. The deal is a major win for new Boeing CEO Kelly Ortberg and could help avert a potential strike.

Boeing announced on Sunday that it has reached a tentative agreement with the International Association of Machinists and Aerospace Workers (IAM), potentially averting a strike by over 32,000 workers in the U.S. Pacific Northwest. The proposed four-year contract includes a 25% general wage increase, improved retirement benefits, and commits to building the next commercial airplane in the Seattle area.

The deal would be the first full labor contract in 16 years if approved and is a significant win for newly appointed CEO Kelly Ortberg, who has been tasked with improving quality at the aviation giant. The union, which called it the best contract it has ever negotiated, will vote on the deal on Thursday.

The agreement comes at a critical time for Boeing, which faces financial pressures and scrutiny from regulators and customers. The company aims to ramp up production of its 737 MAX to 38 aircraft per month by the end of the year. If ratified, the deal would secure labor peace as Boeing works on new jet models and establishes long-term job security for its workers.

(With inputs from agencies.)