Boeing, machinists reach deal to end strike - Airlines - Transportation - Company Announcements

"Union members are scheduled to vote on the contract Thursday, Boeing (BA: news, chart, profile) said in a statement. The union's 19,000 members in the Seattle, Wichita, Kan., and Portland, Ore., areas struck Sept. 2 after rejecting Boeing's previous three-year contract proposal in a dispute over pay and benefits.
Union officials confirmed the agreement was reached late Friday, according to the Associated Press.

'The new agreement supports our business plan and addresses the key issues raised by IAM-represented employees and the union,' Alan Mulally, president and CEO of Boeing Commercial Airplanes, said in a company statement. 'The total cost to Boeing is similar to the previous contract offer and meets our definition of a reasonable settlement. It also supports our plan for making continued quality and productivity improvements, which is the key to being competitive and winning new business.'

According to Boeing, terms of the contract agreement include a pension multiplier of $70 per month for each year of service, up from the current $60; maintaining existing health care plans under the same cost provisions of the IAM's previous contract with Boeing; instead of a general wage increase, a ratification bonus equaling 8 percent of each employee's total pay during the past 12 months, which will average about $5,200 per individual; and two lump sum bonuses, of $3,000 each, which will be paid at the end of 2006 and 2007."

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