An agreement in principle has been reached to end the strike at Boeing

The Boeing strikers’ union announced on Saturday, October 19, that it had reached an agreement in principle with the aircraft manufacturer’s management, more than a month after the start of the social conflict that paralyzed several of the company’s factories. In this new agreement, Boeing notably offers a salary increase of 35% over four years.

Negotiations over wages are failing as Boeing has moved from a +25% proposal to +30% in four years, when the union is demanding +40%. “We have received a negotiated proposal for a strike resolution that deserves to be considered and presented to our members”published in X by the machinists union, the IAM, specifying that it will be put to a vote on Wednesday, October 23. “We look forward to our employees’ vote on this negotiated proposal.”the aircraft manufacturer reacted to Agence France-Presse (AFP) on Saturday.

The strike of more than 33,000 workers has paralyzed, since September 13, the group’s two main factories: Renton, which produces the 737, its best-selling aircraft, and Everett, which manufactures the 777, 767, and operates several military programs.

$7.6 billion in losses

Despite negotiations that began in May and have been underway with federal mediators since mid-September, deep differences persisted between the Seattle-area IAM machinists union and Boeing management over the upcoming social agreement.

In recent weeks, the aircraft manufacturer has announced numerous measures to preserve and then replenish its cash flow, including a reduction of around 10% of its global workforce in the coming months. At the end of 2023, the group employed more than 170,000 people.

Boeing also announced $5 billion in pre-tax charges in its third-quarter accounts, partly due to the strike, as well as the halting of 767 Freighter production.

According to a Friday estimate from the Anderson Economic Group (AEG), the five-week strike cost a total of $7.6 billion in direct losses, including at least $4.35 billion for Boeing and $1.77 billion for its suppliers.