Boeing and its largest union announced they have agreed on a new contract that, if approved, would avert a strike that threatens to shut down aircraft production by the end of next week.
Boeing said the 33,000 workers represented by the International Union of Machinists and Aeronautical Personnel will receive a 25% pay increase over the four-year contract, with average wages rising 33% due to seniority increases. That’s down from the 40% the union had sought during negotiations. But the company agreed to the union’s request that Boeing’s new model be built in Washington state, presumably by union members.
Boeing will also provide employees with a $3,000 lump sum and reduced copayments on health care costs. The company will make new 401(k) contributions of up to $4,160 per employee, but the union will not be able to implement a request to restore the defined-benefit pension plan that was eliminated in 2014.
