### Boeing Reaches New Agreement with Union to Potentially End Lengthy Strike

After nearly seven weeks of halted aircraft production, Boeing and its machinists' union have come to terms on a new contract proposal aimed at resolving the protracted strike. The strike has significantly affected Boeing's operations, with over 32,000 machinists, primarily based in the Seattle region, having walked off the job on September 13. A vote on this latest proposal is scheduled for Monday, and the union has recommended that workers approve the contract.

The International Association of Machinists and Aerospace Workers District 751, which represents the machinists, indicated that they have reached the limit of what can be achieved through negotiations and strike actions. "In every negotiation and strike, there is a point where we have extracted everything that we can in bargaining and by withholding our labor," the union stated. They expressed concerns that prolonging the strike could result in a less favorable offer in the future and acknowledged the significant gains made thus far.

Key aspects of the new proposal include a 38% wage increase over four years, an improvement from the previously rejected 35%. Cumulatively, this would lead to nearly 44% compounding pay increases, according to the union. Additionally, workers would have the choice between a $12,000 one-time ratification bonus or a combined $7,000 ratification bonus with a $5,000 401(k) contribution.

CEO Kelly Ortberg, who took over as CEO in August, noted that the company has been intensely working to find a solution that satisfies both the company's sustainability and the employees' demands. Despite these efforts, earlier proposals were rejected by the workers, emphasizing their persistent demands for higher compensation amid rising living costs in the Seattle area, influenced by the expansion of tech giants like Microsoft and Amazon.

The extended strike has compounded Boeing's existing struggles, including recent production flaws and safety issues, most notably an incident involving a door plug failure on a Boeing 737 Max 9 earlier this year. Financially, the company reported a loss exceeding $6 billion in the last quarter, projecting it will continue to struggle with cash flow issues through 2025.

The resolution of this labor dispute is critical as it impacts not only Boeing’s plans for stabilization but also broader economic indicators, such as the upcoming U.S. jobs report. The outcome of Monday's vote will be instrumental in determining Boeing's immediate future course of action.