Boeing and Unions Reach Tentative Labor Agreement, Committing to New Aircraft in Seattle-Portland

Boeing announced a tentative agreement on a new contract with the Districts 751 and W24 of IAM (International Association of Machinists & Aerospace Workers), representing over 33,000 employees. This agreement marks the first full negotiation between Boeing and the union in 16 years, following contract extensions in 2011 and 2014. The agreement includes historic wage increases, improvements in healthcare benefits, and long-term job security for workers, particularly in the Pacific Northwest, as the company commits to building the next aircraft in the Seattle-Portland area.

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According to Boeing, the contract will offer the largest general wage increase ever achieved, reduce employee cost-sharing on healthcare, and increase company contributions to retirement plans. Additionally, the agreement addresses improvements in work-life balance for employees. The tentative agreement covers employees from the Commercial Airplanes and Defense, Space & Security divisions, including those working on flagship programs such as the 737 MAX, 777X, and KC-46A Tanker.

Stephanie Pope, President and CEO of Boeing Commercial Airplanes, shared a video message with employees, highlighting the importance of the agreement. “We’ve listened to what’s important to you in the new contract,” Pope said. “The contract offer takes care of you and your families with better wages, affordable healthcare, and retirement benefits. It also reinforces our commitment to the Pacific Northwest, where our team will build Boeing’s next airplane, ensuring job security for future generations,” she added.

The new agreement will need to be ratified by union members next Thursday. In July, workers had approved a strike plan in case the negotiations failed.

Workforce in the Pacific Northwest and Portland

IAM District 751 primarily represents Boeing workers in Washington, while District W24 covers employees in Portland, Oregon, with a smaller group in California. These workers are key to supporting the production of Boeing’s commercial and defense aircraft, such as the 767, 777/777X, and P-8, among others. The last full contract was negotiated in 2008, with an eight-year extension that began in 2016.

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Main points of the agreement

The tentative agreement between Boeing and its unions includes a 25% wage increase over four years, with 11% from day one; 4% in 2025; 4% in 2026; and 6% in 2027. As a result, the new minimum hourly wage ranges from $21 to $37 depending on the worker’s category, with the maximum ranging between $43.58 and $57.43. Although the figure is lower than the 40% initially demanded by the unions, it includes other improvements in healthcare and retirement plans.

An additional $3,000 bonus will also be paid to each employee within the next 30 days if the new contract is ratified on September 12.

Regarding retirements, Boeing will contribute up to $4,160 per employee each year to the retirement plan. The healthcare plan will include a new option for free primary care and a new company-paid long-term disability plan.

Additional benefits include a new floating holiday, reduced mandatory overtime hours, 12 weeks of maternity leave, job category upgrades for 4,000 employees, a doubling of the annual safety shoe allowance to USD 150, and an increase to USD 750 per week in short-term disability benefits, among others.