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  • 1440 Daily Digest

Boeing's Labor Deal



Boeing and its largest union reached a deal yesterday to avoid an end-of-the-week strike. If approved, the agreement would raise the company's 33,000 production workers' pay by at least 25% over four years.


The deal—Boeing's first with the International Association of Machinists and Aerospace Workers since 2008—falls short of the 40% raise the union had called for. In practice, however, wages will increase by an average of 33% due to seniority increases. A majority of union members must vote to approve the deal for the contract to be ratified. The agreement comes as Boeing's production has slowed in recent months amid quality concerns, particularly over its 737 Max jets.


Separately, Boeing's uncrewed Starliner landed without incident in New Mexico on Saturday amid concerns over its thrusters. The future of Boeing's Starliner spacecraft—and the company's partnership with NASA—remain unclear amid disagreements over the Starliner's readiness to return two astronauts to Earth. See previous write-up here.

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