Tentative deal announced to end Boeing strike

A tentative agreement has been reached to conclude the five-week strike at Boeing. Union leaders informed the 33,000 striking members about the potential deal, which requires ratification by the majority of the International Association of Machinists. The voting process is scheduled for Wednesday. 

This strike has considerably impacted Boeing, contributing to estimated losses of $1 billion monthly. The company, already battling long-term issues, has also faced losses related to the grounding of its 737 Max aircraft following two fatal crashes. Boeing's struggles have amounted to over $33 billion in losses.

The new contract proposal includes a 35% wage increase over four years and higher company contributions to 401(k) plans. It is seen as a significant improvement over a previous offer, which was rejected by 95% of the union members. That proposal included a 25% wage increase, smaller 401(k) contributions, and a $3,000 signing bonus. The revised offer features a $7,000 signing bonus.

Boeing's recent negotiations resulted in a 30% wage increase proposal termed as their 'best and final offer.' Despite its financial challenges, Boeing is positioned to offer competitive wages due to the relatively small share of labor costs in its overall production expenses. Boeing's ongoing crisis, marked by crashes, safety investigations, and substantial financial losses, contrasts with its critical role as one of the two main manufacturers of large commercial jets worldwide.