Boeing is offering its employees a 25% pay increase over four years in an effort to avert a strike that could potentially shut down its assembly lines by the end of the week. The deal covers more than 30,000 workers, and union leaders are urging members to support the proposal, calling it the best contract they’ve ever negotiated.
The vote, scheduled for Thursday, will determine if workers in the Seattle and Portland regions accept the agreement. If rejected, a second vote requiring approval by two-thirds of union members would be needed for a strike to proceed.
Boeing’s chief operating officer, Stephanie Pope, called the offer “historic” in a video message to employees. If ratified, it would mark the first full labor agreement between Boeing and the unions in 16 years. The current contract, initially negotiated after an eight-week strike in 2008, was extended in 2014 and is set to expire this week.
While the proposal falls short of the union’s original demand for a 40% pay increase, it has been met with approval from negotiators, who have advised workers to accept the deal. The agreement also includes enhanced healthcare, improved retirement benefits, and a commitment from Boeing to build its next commercial aircraft in the Seattle region. Additionally, union members would gain more influence over safety and quality issues.
“This is the best contract we’ve negotiated in our history,” the International Association of Machinists and Aerospace Workers (IAM) said in a statement, highlighting the importance of the deal.
Boeing has faced significant challenges in recent years, including financial losses, safety concerns, and reputational damage after two fatal accidents five years ago. The union emphasized that “IAM members will bring this company back on track,” referring to Boeing’s need to overcome its self-inflicted crises.
Kelly Ortberg, Boeing’s newly appointed chief executive, took the helm last month amidst mounting pressure to improve the company’s finances and address quality issues. The proposed labor agreement would be a significant milestone for Ortberg as he works to navigate Boeing through its turbulent period.