Boeing and its largest union, the International Association of Machinists and Aerospace Workers, have successfully negotiated a tentative agreement on a new contract to prevent a strike that could have halted aircraft production. The deal involves a 25% pay raise over a four-year period for the 33,000 workers represented by the union, leading to an average 33% wage increase including seniority step raises.
Despite the union's initial demand for a 40% pay increase, the final agreement falls short of that figure, but it includes other benefits such as $3,000 lump sum payments for workers and a reduction in health care costs. The key concession made by Boeing to build its next aircraft in Washington state, likely by union members, was seen as a significant victory for the union. According to Jon Holden, president of IAM District 751, this proposed contract is being considered the best in the history of their negotiations. The bargaining committee of the union is urging members to ratify the contract, indicating their satisfaction with the terms.
Boeing's president of the commercial airplanes division, Stephanie Pope, highlighted the proposed contract as the company's largest ever general wage increase and emphasized the job security the new agreement would bring by committing to build the next aircraft in the Puget Sound area. The agreement hinges on union members ratifying it by late Thursday, with the threat of a strike looming if the deal is rejected. The union has scheduled an election for workers to vote on accepting the contract or authorizing a strike, with voting taking place at various locations in Washington state and California. The potential strike could have added to Boeing's challenges as it navigates financial losses and aims for turnaround under the leadership of its new CEO, Kelly Ortberg.