Boeing, IAM reach tentative agreement

Boeing and the International Association of Machinists and Aerospace Workers reached tentative agreement on a new four-year contract covering 27,000 employees in Washington, Oregon and Kansas. Union leadership is recommending that employees vote to ratify the contract.

The company 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 offer provides general wage increases every year and increases pension benefits. In addition, Boeing is proposing no changes to the cost share employees currently pay for a selection of outstanding health care plans.

"This is an outstanding offer that rewards employees for their contributions to our success while preserving our ability to compete," said Scott Carson, president and chief executive officer of Boeing Commercial Airplanes. "I thank both negotiating teams and the federal mediator for their hard work and commitment in reaching this agreement.

We recognise the hardship a strike creates for everyone - our customers, suppliers, employees, community and our company -and we look forward to having our entire team back."