Boeing, union reach preliminary deal to avert Seattle-area strike

Thembi Simelane
Avbob Investment Plan
NEW YORK – Boeing has agreed on a preliminary new contract with union leaders that includes a hefty wage hike that would avert a strike in the Seattle region, the two sides announced.
The agreement, which must be ratified by workers, includes a 25 percent wage increase over the four-year life of the contract, according to Boeing and the International Association of Machinists and Aerospace Workers (IAM) District 751, which represents more than 33,000 workers.
Other key elements include lower health care costs for workers, reduced mandatory overtime, 12 weeks of paid parental leave and a commitment to build Boeing’s next new airplane in the Puget Sound region of Washington state if the contract is ratified this week, according to a Boeing fact sheet.
The preliminary agreement comes just weeks after the arrival of new Boeing CEO Kelly Ortberg, who has been tasked with turning around the iconic plane-maker after its reputation was tainted by a series of air safety problems and other setbacks.
While Ortberg had pledged to “reset” relations with the union, the IAM as recently as Friday had described the two sides as “far apart” on key points.
In a message to rank-and-file members, IAM district president Jon Holden said the union’s “strength, solidarity and unity” had produced “the best contract we ever had.”
He urged members to review the proposal carefully, saying, “We believe this proposal will benefit all our members and our future.”
If workers ratify the contract, Boeing would follow in the steps of the United Parcel Service, which narrowly averted a strike in July 2023 after reaching agreement with the Teamsters union.
In contrast, Detroit automakers General Motors, Ford and Stellantis experienced a six-week partial strike last fall before reaching a deal with the United Auto Workers that included a 25 percent wage hike.