# Boeing Approaches Tentative Agreement with Machinists Union to Prevent Strike
Boeing is close to circumventing a significant labor strike after arriving at a tentative arrangement with the International Association of Machinists (IAM), which represents 33,000 of its employees on the West Coast. The agreement, unveiled on Sunday, seeks to meet workers’ requests for better salaries, improved working conditions, and enhanced benefits. Should it gain the approval of union members in a vote set for Thursday, the contract would represent a crucial advancement in Boeing’s labor relations, providing the largest salary increase in the company’s history.
## Landmark Salary Increase and Enhanced Benefits
The proposed agreement features a 25% salary increase over the upcoming four years, marking the most substantial general wage increase Boeing has ever proposed. Beyond the salary boost, the agreement assures lower employee contributions to healthcare expenses, making medical coverage more accessible for workers. It also entails greater company contributions towards retirement schemes and enhancements aimed at promoting a healthier work-life balance.
Stephanie Pope, president and CEO of Boeing Commercial Airplanes, highlighted the importance of the agreement in a press release, noting that it “delivers the largest-ever general wage hike in Boeing’s history.” She further stated that the contract would bolster job security for Boeing’s workforce, particularly in the Puget Sound region, where the company has a long-standing presence.
## Dedication to Puget Sound and Future Manufacturing
A key feature of the tentative agreement is Boeing’s pledge to manufacture its next new aircraft in the Puget Sound region of Washington state. This move is viewed as a significant win for the local workforce, ensuring long-term job stability in a region that has served as a manufacturing hub for Boeing for many years.
Boeing previously suggested a potential shift of production to its non-union facility in South Carolina, a decision that could have profoundly impacted the unionized workforce in Washington. However, the new agreement alleviates that concern, guaranteeing that the upcoming generation of Boeing airplanes will be produced in the Pacific Northwest.
“Boeing’s roots lie here in Washington,” Pope remarked. “This is where generations of workers have crafted remarkable airplanes that unite the globe. And that’s why we are thrilled that, as part of the contract, our team in the Puget Sound region will manufacture Boeing’s next new aircraft.”
## Union’s Quest for Enhanced Terms
The IAM negotiating team initially aimed for a 40% salary increase for union members, but after lengthy discussions, they encouraged workers to accept the 25% increase, labeling it “the best agreement we’ve negotiated in our history.” In a communication to union members, the IAM team underscored the advancements in wages, benefits, and working conditions, while recognizing that not every request was fulfilled.
“We utilized every shred of power we could muster to pursue everything you indicated was vital,” the IAM negotiating team stated. “We may not have secured everything we desired, but you all can take pride in your Strength, Solidarity, and Unity because you have accomplished the best agreement we have ever attained. An arrangement that establishes a new standard for others in the industry to strive for.”
## Emphasis on Safety and Quality
In addition to financial improvements, the tentative agreement includes measures that empower workers with a greater say in safety and quality matters. Under the new contract, employees will have the chance to convene annually with Boeing’s aerospace safety committee to voice concerns and suggest enhancements. This marks a substantial step towards addressing safety challenges that have impacted the company in recent years, particularly at its South Carolina facility.
Boeing has faced scrutiny for failures in safety protocols, including inadequate testing and missing components on certain planes. In 2024, the company pleaded guilty to conspiracy to deceive the Federal Aviation Administration (FAA) regarding the assessment of the 737 Max, following two tragic crashes. The new contract aims to ensure that workers have a “seat at the table” to address such issues proactively.
## Boeing’s Financial Struggles
Boeing has been grappling with financial setbacks since the grounding of the 737 Max in 2019 and 2020, which resulted in operating losses amounting to $33.3 billion, according to CNN. The company finds itself in a delicate situation and cannot afford a work stoppage, which would further intensify its financial challenges. Analysts from JPMorgan have cautioned that a strike could lead to severe repercussions for Boeing, making it essential for the company to finalize an agreement with its workforce.
Former Boeing CEO Dave Calhoun acknowledged the company’s financial hurdles, informing investors that Boeing would need to work “ardently” to avoid a strike. “We recognize that wage demands will be significant,” Calhoun noted, adding that the company was dedicated to treating its employees well throughout the negotiation process.
## Workers to Decide on the Agreement
The ultimate decision now lies with the workers, who will cast their votes on the tentative agreement on September 12th. If the contract receives approval, Boeing will avert its first major strike in 16 years.
