Breaking News: Boeing and Machinists’ Union Reach New Contract Proposal
In a significant development, Boeing and its machinists’ union have agreed on a new contract proposal, potentially ending a strike that has lasted over a month and disrupted the manufacturer’s aircraft production. The union announced the deal on Saturday, with a ratification vote scheduled for Wednesday.
Key Terms of the Proposal
The new proposal includes several key changes, such as:
- 35% wage increases over four years
- A higher signing bonus of $7,000
- Guaranteed minimum payouts in an annual bonus program
- Higher 401(k) contributions
Government Involvement
Acting U.S. Secretary of Labor Julie Su played a crucial role in facilitating negotiations between the two parties earlier this week. The White House expressed support for the collective bargaining process, stating that the ultimate decision on the contract would be up to the union workers.
Background of the Strike
The strike began on September 13 after over 30,000 machinists rejected a tentative agreement that included 25% wage increases over four years. Boeing later made a revised offer, but the union rejected it, stating that it was not negotiated in good faith.
Impact on Boeing
The strike has had significant financial implications for Boeing, which is already grappling with a safety crisis and challenges in its other programs. The company has announced job cuts and plans to stop producing 767s in 2027. A ratified contract on Wednesday would be a welcome victory for new CEO Kelly Ortberg, who took the helm in August.
What’s Next
The union will present the proposal to its members for consideration, with a ratification vote scheduled for Wednesday. If approved, the contract could bring an end to the strike and allow Boeing to focus on rebuilding its business.
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