Boeing, trade union reach tentative deal to end strike (update)

Update 12.55 PM EST: Adds comments from Boeing

A union representing around 30,000 Boeing (NYSE:BA) employees on Saturday announced a tentative agreement that, if finalized, could end more than a month-long strike that has disrupted production at the aircraft maker.

As part of the deal, Arlington, Virginia-based Boeing (NYSE:BA) is set to offer its workers a 35% pay hike over four years, sharply higher than its initial offer of 25%, the union known as the International Association of Machinists (IAM) said.

Other terms of the deal include a reinstated incentive plan and improved contributions to employees’ 401(k) plans.

“With the help of Acting U.S. Secretary of Labor Julie Su, we have received a negotiated proposal and resolution to end the strike, and it warrants presenting to the members and is worthy of your consideration,” the union said in an X post.

95% of members of the IAM union voted against the initial offer in September, sparking a weekslong strike and halting the production of some of Boeing’s (NYSE:BA) best-selling aircraft.

The union’s rank-and-file membership is expected to vote on the latest deal on Wednesday. “The future of this contract is in your hands. Thank you for your continued input and support throughout this process,” IAM added.

“We look forward to our employees voting on the negotiated proposal,” Boeing (NYSE:BA) said in a statement, detailing its renewed offer and adding that some of the other terms of the September deal remain unchanged.