Boeing and union reach tentative deal, 25% wage increase for workers

The struggling aircraft manufacturer Boeing announced on Sunday that it has reached a tentative agreement with its largest union which includes a 25% wage increase just days before a threatened strike.

The International Association of Machinists (IAM), which represents approximately 33,000 employees, had originally been advocating for raises of about 40%.

The income increase agreed on Sunday, as well as improvements to healthcare costs and retirement benefits, are to be applied over four years.

It also provides increased job security for union members, including a commitment to build the next new airplane at one of the union-represented plants in the Puget Sound region.

Boeing noted that if the tentative agreement is ratified by September 12, 2024, employees will receive a one-time $3,000 lump sum payment.

The agreement is set to expire at midnight on Thursday, and a strike could have started immediately if no deal was reached.