SEATTLE TheStreet) -- Boeing (BA) and the International Association of Machinists say they have tentatively agreed to a landmark deal that extends their contract, locates construction of the new 737 MAX in Renton, Wash., and ends a bitter dispute over whether Boeing can build 787s in South Carolina.
The deal appears to reverse what had been a combative relationship and provide a global solution to a series of contentious issues that have troubled both parties.
The deal represents "an unprecedented commitment by Boeing to Puget Sound and Portland for the 737MAX and the related manufacturing that's currently being performed here," the IAM negotiating committee said, in a prepared statement. "This will generate long-lasting security for our members."
The two sides have been secretly discussing a deal for about six weeks. The contract was due to expire in September 2012. It would be extended for four years. The negotiating committee unanimously recommended approval."In late October, senior executives from Boeing approached us to ask if we could get together to talk about issues that were going to come up in the 2012 contract talks," the committee said, in its statement. "We agreed to meet with them to hear what they had to say. What resulted was an ongoing dialog and a series of meetings that ended with a proposal by the company to extend the current contract with some changes in certain areas -- but a huge improvement in job security, which was your No. 1 issue in our first survey for the 2012 contract negotiations." The union said it did not publicly announce the talks because "in the past, we've gone through negotiations with media, politicians and bloggers second-guessing our moves and trying to determine the outcome while we work against a looming deadline." Boeing issued a relatively brief, seven-paragraph statement affirming that it had reached the agreement. "If our employees ratify a new agreement, building the 737 MAX in Renton will secure a long and prosperous future there, as well as at other sites in the Puget Sound area and in Portland, Ore., where 737 parts are built," noted Jim Albaugh, CEO of Boeing Commercial Airplanes.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV