Boeing $BA (BA) and the union representing striking machinists have reached a new contract deal that could put an end to the work stoppage that’s costing the troubled aerospace giant millions of dollars a day.
Leaders of the machinists union recommended workers accept the deal, saying it's time to "confidently declare victory"
Boeing $BA (BA) and the union representing striking machinists have reached a new contract deal that could put an end to the work stoppage that’s costing the troubled aerospace giant millions of dollars a day.
The new contract includes a 38% general wage increase over the lifetime of the contract, up from 35% in Boeing’s initial offer but shy of the 40% initially put forward by the International Association of Machinists and Aerospace Workers (IAM) District 751. The union represents about 33,000 striking workers.
The deal also includes a $12,000 ratification bonus and a 100% 401(k) match. In a post late Thursday on X $TWTR (META), the IAM encouraged members to accept the deal when it comes to a vote on Monday.
“It is time for our Members to lock in these gains and confidently declare victory,” the union said. “We believe asking members to stay on strike longer wouldn’t be right as we have achieved so much success.”
Boeing stock was up more than 2% in pre-market trading Friday following the news.
A major sticking point in negotiations was the loss of the workers’ pension, which was cut 10 years ago. While the new contract wouldn’t reinstate the benefit, under the proposed deal, workers vested in the Boeing Company Employee Retirement Plan (BCERP) would receive a multiplier benefit of $105.
The union warned that further extending the strike, which began on Sept. 13, would risk a worse offer for workers down the line.
“In every negotiation and strike, there is a point where we have extracted everything that we can in bargaining and by withholding our labor,” the IAM said. “We are at that point now and risk a regressive or lesser offer in the future.”
The deal was brokered with the help of Acting Secretary of Labor Julie Su.
For its part, Boeing is struggling to grapple with the financial blow from the walkout, compounded with issues with its aircraft and airlines partners. Last week, the company reported a loss of $6.2 billion in the third quarter, brought on by delivery delays and worker stoppages.
On Monday, the Virginia-based manufacturer said it will sell more than $20 billion in stock to raise cash.
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