Boeing, Union Reach Tentative Deal To End 5-Week Long Strike

Boeing (BA) and the union representing its machinists reached a tentative deal that could end the five-week long strike that has hobbled the aircraft maker’s operations. 

The union said it plans to hold a vote on the new settlement Wednesday, according to a statement Saturday.

The deal includes a 35% bump in wages over four years, up from Boeing’s past offers of 30% and 25%, but still below the union’s stated goal of 40%. The agreement also includes a boost to members’ 401(k) plans, among other benefits, though it will not bring back the traditional pension plans workers wanted. 

Boeing’s operations have taken an estimated $1 billion hit a month from the strike, exacerbating the plane maker’s financial difficulties after burning through billions of dollars earlier this year to contend with production pauses to address several safety issues and investigations. 

Last week, Boeing announced a series of measures to curb costs, including cutting around 10% of its workforce or 17,000 people, and postponing the launch of its first 777x jetliner. 

The aircraft maker also said earlier this week it plans to sell as much as $25 billion in debt or stock, and made a deal with banks to receive a $10 billion credit line, among other moves to shore up its finances.

Boeing’s stock price has lost more than 40% of its value in 2024 through Friday’s close, making it one of the worst-performing stocks in the S&P 500 so far this year.