Boeing and its machinist Union arrive at a tentative agreement

29 October 2008

Aircraft manufacturer Boeing and its striking machinist union, the International Association of Machinists (IAMAW), have announced a tentative truce to bring to an end a 53-day-old strike that started in the first week of September.

The news of the truce buoyed Boeing shares on Wall Street by 15.5 per cent, trading at $48.91 on Tuesday. Boeing's stock had dropped as low as $39.99 earlier in the month, marking its lowest point since March 2004.

The agreement was reached after five days of discussions in Washington. IAMAW's 27,000 member machinists are expected to vote on the agreement later in the week, even it has been unanimously endorsed by union leadership.

In a statement, Boeing said that the company had reached a tentative agreement with the International Association of Machinists and Aerospace Workers on a new four-year contract covering 27,000 employees in Washington, Oregon and Kansas. 

Its statement said that Boeing had retained the flexibility necessary to manage its business, while making changes to the contract language to address the union's issues on job security, pay and benefits. 

The aircraft maker said the offer provides general wage increases every year and increases pension benefits. Additionally, Boeing is proposing no changes to the cost share employees currently pay for a selection of outstanding health care plans. It said that by mutual agreement, details of the agreement would be released first by the union.