Topline
Boeing reached a tentative agreement with a workers’ union representing more than 33,000 employees, potentially averting a disruptive strike later this week—avoiding more issues for the aerospace company, which has faced a tumultuous few years.
More than 33,000 union members were reportedly preparing to strike if Boeing didn’t come to a … [+]
Key Facts
The tentative deal includes 25% raises over four years and a lower healthcare cost share, according to news releases from the company and the union, International Association of Machinists District 751.
The company also promised to build its next new plane in Washington state’s Puget Sound area if the contract is ratified in time, keeping production in Boeing’s longtime hub for commercial jets after moving some manufacturing to a plant in less costly South Carolina.
The deal, which was reached in the early morning on Sunday after weeks of negotiation, will likely help the company avoid a strike: Boeing’s current contract with the union is set to expire on Sept. 12 and if there was not a new contract in place the workers were preparing to strike, CNN reported.
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What To Watch For
The union’s members still need to vote on the tentative agreement on Thursday, but the group’s leaders are recommending they approve it.
Key Background
A strike would have been the latest in a series of unfortunate events for Boeing, following issues with its 737 planes and its Starliner spacecraft. Concerns circulated about the safety of Boeing’s newer 737 MAX planes after fatal crashes in 2018 and 2019 that were blamed on a faulty flight control system, leading the planes to leave the sky for over a year starting in 2019, and prompting federal investigations that culminated in a deal for Boeing to plead guilty on federal fraud charges this year. The 737 MAX returned to the headlines earlier this year after a mid-flight issue earlier in which a panel blew off of an Alaska Airlines plane. The plane was later found to be missing four bolts, and nearly 200 planes were grounded in January and an investigation began into Boeing and its contractors’ quality and manufacturing issues. Most recently, Boeing’s Starliner spacecraft—made by a different division of the company—experienced thruster malfunctions and helium links to prior docking, which led to astronauts being stuck on the International Space Station for more than two months longer than planned. The two astronauts are still in space, but the Starliner returned to Earth on Friday. Boeing has also reported months of weak plane orders amid investigations into its production and safety problems, despite strong sales last year. In May, Boeing had orders for just four new 737 Dreamliner jets and none for its 737 Maxes, CNN reported. The company replaced its CEO weeks ago.