Boeing, Machinists reach historic agreement

Boeing has reached a historic agreement with its Machinists union that, if ratified by union members, will guarantee that the new version of the 737 jetliner, known as the 737 MAX, will be built in Renton, Washington.

The Seattle Times reports that the landmark deal came out of secret talks between the company and the International Association of Machinists and Aerospace Workers nearly a year before the union’s current contract expires. The agreement also paves the way for settlement of a National Labor Relations Board (NLRB) case against the company, which arose out of Boeing’s decision to create an assembly line for its 787 Dreamliner in South Carolina.

The four-year contract extension reportedly includes a $5,000 signing bonus payable upon ratification, and wage increases of 2 percent per year.

Union leaders expect a ratification vote on Dec. 7.