Agreement at Boeing: Strikes Successfully Averted

Boeing and its largest union announced on Sunday that they have agreed on a new contract. If ratified, this will prevent a strike that would have brought aircraft production to a halt by the end of the coming week. Boeing stated that 33,000 workers represented by the International Association of Machinists and Aerospace Workers will receive a 25% wage increase over the four-year contract. Due to seniority levels, average wages are expected to rise by 33%. However, this agreement falls short of the 40% originally demanded by the union. The company did agree to a significant union demand: building the next aircraft in Washington State, presumably with union members. Additionally, workers are to receive a one-time payment of $3,000 and will bear a lower share of health costs, as stated by Boeing. The proposed contract depends on union members ratifying it by Thursday evening Pacific Time. Otherwise, the union has threatened to strike.