Striking Boeing machine operators consider deal that includes 35% pay raise

Acting Labor Secretary Julie Su helped broker the deal, the union said. “(U.S.) President (Joe) Biden believes the collective bargaining process is the best way to achieve good results for workers, and the final decision on a contract will rest with unionized workers,” the White House said in a statement .

News of the provisional agreement comes just over a week after negotiations ended. Boeing announced on Oct. 11 that it would cut 17,000 jobs — nearly 10% of its workforce — as part of another move to shore up its shaky finances. News of the job cuts came the same day the company said it expected to report a big loss in the third quarter, when it recorded a $3 billion charge on its commercial aircraft business and a $2 billion charge on its defense business, space and security unit. Over the past five years, Boeing has lost more than $25 billion.

This week, hundreds of striking train drivers demonstrated in Seattle as Su and lawmakers pressured the union and the company to return to the bargaining table. In a letter sent Tuesday to Boeing Chief Executive Kelly Ortberg and union leaders, Washington state congressional Democrats, including Senators Maria Cantwell and Patty Murray, as well as Representatives Rick Larsen and Adam Smith, urged both sides to “redouble their efforts to reach a mutually beneficial resolution”.

Machinists, who make up the company’s largest union, walked off their jobs last month for the first time in 16 years. Some analysts estimated that Boeing, already buffeted by regulatory and legal crises, could lose as much as $1 billion a week from the grounding, although others later pegged the loss at just over $1 billion a month after the company instituted cost-cutting measures. The strike also put the company’s credit rating at risk.

Train drivers went on strike on September 13 after vehemently rejecting the company’s first offer, whose proposed 25% pay increase fell far short of the 40% increase many union members sought.

The two sides resumed negotiations with the help of federal mediators just days after the strike began, fueling optimism that a deal could be reached quickly. But talks broke down after two days, with the union expressing frustration that the company was not prepared and did not take its demands seriously.

Negotiators have met several times, with Boeing last month offering a 30% raise, the restoration of an annual bonus program and a $6,000 signing bonus. But the two sides broke off talks earlier this month and accused each other of failing to negotiate in good faith.

The last strike by IAM members, in 2008, lasted 54 days.

Ortberg, who took over as chief executive in August, said he is committed to redefining the relationship between the union and management, but it is unclear whether the current agreement – ​​even if it is approved – will ease years of worker frustration with the enterprise. negotiating tactics, such as threats to move commercial aircraft production out of the region unless the train drivers agreed to concessions, including the loss of their pensions.

Even before the attack, Boeing was struggling to recover from setbacks that began in January, when a part of a 737 Max jet operated by Alaska Airlines exploded mid-flight, leaving a hole in the side of the plane. The crash sparked multiple federal investigations and led the Federal Aviation Administration to limit the number of 737 Max jets the struggling aerospace giant could build.