Boeing reaches early deal on 25% wage increase in hopes of averting strike
Boeing announced Sunday that it has reached a tentative agreement with a union representing more than 32,000 workers in the U.S. Pacific Northwest that could help avert a potentially devastating strike on Sept. 13.
The proposed four-year deal, which includes a 25% across-the-board wage increase, 12 weeks of paid parental leave and greater job security, must be approved on Thursday by Boeing factory workers near Seattle and Portland, represented by the International Association of Machinists and Aerospace Workers (IAM).
If the deal is accepted, Boeing could ensure labor peace at a time when the planemaker is burning cash and trying to ramp up production of its best-selling 737 MAX to a target of 38 planes per month by the end of the year.
Boeing is facing a quality crisis and scrutiny from regulators and customers after an incident in January when a door plug on a nearly new MAX jet flew off an Alaska Air jet while it was in flight.
Although the union had asked for a 40 percent wage increase in the first full negotiation with Boeing in 16 years, the union also won other benefits, including a seat at the negotiating table on issues related to the safety and quality of the production system.
“While it was not possible to achieve success on every individual point, we can honestly say that this proposal is the best contract we have negotiated in our history,” the local union representing Boeing workers, IAM, said in a statement.
It also secured a major commitment from the planemaker to produce its next commercial aircraft program in the U.S. Pacific Northwest, if it launches during the agreement’s term. It is not clear when Boeing would launch its next aircraft.
Members of US President Joe Biden’s administration watched the talks. Last week, Labor Minister Julie Su urged the sides to reach a “fair contract” in an interview with Reuters.
Su had spoken with both Boeing’s new CEO, Kelly Ortberg, a source familiar with the matter said, as well as local union leader Jon Holden.
Boeing workers, who produce the MAX as well as Boeing’s 777 and 767 wide-body jets, voted in July to mandate a strike.
First publication: 08 Sep 2024 | 19:14 IST