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After a month of employees being on strike, Boeing has reached a tentative agreement with 33,000 striking machinists.

Let’s bring you up to speed: On September 13, roughly 33,000 Boeing machinists with the International Association of Machinists (IAM) went on strike after rejecting Boeing’s previous contract proposals. The workers were primarily protesting inadequate wage increases and the elimination of their pension plan a decade earlier, which they sought to have reinstated. They also demanded improved retirement benefits.

What’s happening now: In an announcement, Boeing and the IAM revealed that the tentative agreement includes a 35% wage increase over four years, addressing one of the key demands of the striking machinists. The deal also reinstates an incentive pay plan with a guaranteed minimum annual payout of 4%, providing additional financial benefits to workers. Moreover, Boeing agreed to increase its contributions to employees’ 401(k) plans, but it stopped short of restoring the original pension plan discontinued a decade ago.

Next steps: Now that a tentative agreement has been reached, the next step is for the machinists to vote on whether to accept or reject the proposal.  

US involvement: According to the IAM, Labor Secretary Julie Su was involved in reaching an agreement between Boeing and the employees. In a separate statement released by IAM, they said, “With the help of Acting US 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.”