Boeing and the Machinists union leadership reached a last-minute deal Sunday that would avert a strike and give the aircraft manufacturer space to reset as its struggles to recover from multiple setbacks.

But many workers said the deal falls short of their demands, leaving the possibility of work stoppage on the table.

The 11th-hour agreement — reached at about 2:30 a.m. Sunday, with the news publicly released a couple of hours later — will avoid a strike if a majority of the union’s members ratify the deal, as recommended by International Association of Machinists District 751 President Jon Holden, who led the negotiations.

The contract offers workers a 25% general wage increase, enhanced retirement benefits, fewer hours of mandatory overtime work and increased parental leave.

And, in what could prove a historic element of the contract for this region, Boeing offered a first-of-its-kind commitment that if it launches an all-new plane in the next four years, that jet will be built in the Puget Sound area by the local workforce.

In a video message to employees Sunday, Boeing Commercial Airplanes President and CEO Stephanie Pope called the agreement “a historic offer that takes care of you and your family” and “deepens our commitment to the Pacific Northwest.”

“This would go along with our other flagship models, meaning job security for generations to come,” Pope said. “It’s a big commitment to you and to our community.”

Some union members said Sunday the proposal didn’t meet their expectations for wage increases or a restored pension. And the commitment to building in Washington, tied to the length of the four-year contract, didn’t last long enough to give workers the reassurance they were looking for.

If union members reject the offer, they could initiate a strike when the current agreement expires Thursday.

“The union has sold us out,” said Robert Falkowski, a flight line worker in Everett.

Holden, who led negotiations for the International Association of Machinists said in a note to members Sunday that these discussions are “a give and take,” acknowledging there was no way to get “every single item” on the union’s wish list.

But, he called the proposal “the best contract we’ve negotiated in our history.”

“Financially, the company finds itself in a tough position due to many self-inflicted missteps. It is IAM members who will bring this company back on track,” Holden said.“Ultimately, we love this company and couldn’t be more proud of the jobs we do or the products we build. … This proposal helps keep our legacy alive.”

Negotiations down to the wire

The deal would provide the Machinists a general wage increase of 25% over four years.

With entry-level pay hiked further, more than 4,200 employees moved to a higher pay grade, as well as adjustments to how pay increases over time, the contract would give Machinists an average wage growth of 33%.

The deal would also lower out-of-pocket medical costs and the company will pay more than $4,000 per year into the union’s 401(K) retirement savings plan for each Machinist.

Union members would also get a $3,000 lump sum if they ratify the deal in Thursday’s vote.

The deal was reached at the end of weeks of intense negotiations inside the Westin hotel in downtown Seattle. Teams of negotiators for both sides moved into the hotel in mid-August to hash out the details in person, meeting regularly each day.

The two sides were scheduled to check out Sunday morning, with the union needing some time before the vote Thursday to provide its members with an analysis of whatever the offer contained and a recommendation to accept or reject.

During the day Saturday, the union was still giving its members a pessimistic outlook.

“We are nearing the end. We expect the company’s last, best, and final offer very soon,” the union said in a message to its members that day. “The company and the Union are far apart from reaching an agreement.”

But late Saturday evening, union spokesperson Deirdre Kaniewski told The Seattle Times “things are changing by the minute here.”

By Sunday morning, the IAM and the company had come to an agreement. Union members were shocked by the overnight update.

The decision to accept the deal may fall along generational lines. The current proposal would give newer union members more job security and a boost in pay but longtime employees wanted to see more from the retirement, insurance and ratification bonus offer.

The union’s initial demand was a 40% pay hike over three years, a starting position with compromise expected. As is often the case in the dance of negotiations, Boeing didn’t come close enough until the last minute.

“Finally, in a position of great leverage, we used every ounce of power we could to go after everything you said was important,” Holden wrote in the message to his members. “We did not get everything we wanted, but you all can be proud of your Strength, Solidarity, and Unity because you have achieved the best contract we have ever had.”

Machinists would get an immediate pay raise of 11%, then successive raises each year of 4%, 4% and 6%.

Although the Machinist contract provides high wages after six years on the job, entry-level wages have lagged not far above those at local grocery stores. The contract would help the jet maker hire and retain new employees.

The contract also includes a provision reducing mandatory overtime, which union members had asked to prioritize to improve their lives. In the same vein, it adds 12 weeks of paid parental leave.

Falkwoski, the Everett flight line worker, said there are some things that the contract got right but the wage proposal didn’t keep up with inflation, leaving some workers making less than they would have years ago.

But, Falkwoski said he’s most concerned about Boeing leadership.

Senior leaders, including four of the last five CEOs, keep leaving the company with significant compensation “all while flying this company into the ground,” Falkwoski said.

A focus on quality and safety

The contract, if ratified by the union, would be in effect from Thursday through September 2028.

This year’s negotiations were the first full contract discussions between Boeing and the IAM in 16 years. Union members ratified a contract in 2008 and approved extensions in 2011, 2014 and 2016.

Boeing has, in the past, initiated midcontract discussions which forced the union to concede some benefits. The union made those concessions — including giving up its pension plan — under threat from Boeing that the company would move production outside of Washington.

The Machinists union has since passed an amendment to its constitution that prevents midcontract negotiations without a vote of the full membership. But a decade later, union members still feel the sting of those concessions.

On Sunday, some union members said on social media that the proposal reminds them of the betrayal they felt when union leaders agreed to those midcontract negotiations and concessions.

The 300-plus-page proposal released Sunday includes clauses related to the safety and quality of its aircraft, something that has become particularly important following the Alaska Airlines panel blowout earlier this year.

Since then, Boeing has slowed the rate of production to focus on quality and safety on its factory floor but workers are skeptical the company is committed to lasting changes.

Under the proposed contract, Boeing promises to include the union in discussions about simplifying its process for safety and quality management, as well as changes to inspections. Boeing also agrees to notify the union ahead of any significant changes to production rate.

In an effort to focus on improving relations between the Machinists and the company, the contract would create a new committee with leaders from both parties. That committee would meet semiannually to discuss future production, competition and quality and safety systems.

The contract would also add a new letter of understanding related to the use of artificial intelligence in the workplace. In the letter, Boeing agrees that employees would not be laid off or downgraded as a direct result of adding new AI systems in production and maintenance.

Holden told union members to take the days before Thursday’s vote to look over every change in the contract proposal. The union has provided a copy of the new contract with every change from the current contract highlighted in red ink.

“This vote is now in your hands,” Holden wrote.

Some workers don’t need those days; they already know they want to strike. On social media, there were calls to go “tools down” this week.

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