Agencies
Boeing has agreed on a tentative new contract with union leaders that includes a wage hike that would avert a crippling strike in the Seattle region, the two sides announced Sunday.
The agreement, which must be ratified by workers, includes a 25% wage increase over the four-year life of the contract, according to Boeing and the International Association of Machinists and Aerospace Workers (IAM) District 751, which represents more than 33,000 workers.Other key elements include lower health care costs for workers, reduced mandatory overtime, 12 weeks of paid parental leave and a commitment to build Boeing’s next new airplane in the Puget Sound region of Washington state if the contract is ratified this week, according to a Boeing fact sheet.
The preliminary agreement comes just weeks after the arrival of new Boeing CEO Kelly Ortberg, who has been tasked with turning around the iconic plane maker after its reputation was tainted by a series of air safety problems and other setbacks.
While Ortberg had pledged to “reset” relations with the union, the IAM as recently as Friday had described the two sides as “far apart” on key points.
In a message to rank-and-file members, IAM district president Jon Holden said the union’s “strength, solidarity and unity” had produced “the best contract we ever had.” He urged members to review the proposal carefully, saying, “We believe this proposal will benefit all our members and our future.” If workers ratify the contract, Boeing would follow in the steps of the United Parcel Service (UPS), which narrowly averted a strike in July 2023 after reaching an agreement with the Teamsters union.
In contrast, Detroit automakers General Motors, Ford and Stellantis experienced a six-week partial strike last fall before reaching a deal with the United Auto Workers (UAW) that included a 25% wage hike.
Boeing commercial airplane president Stephanie Pope described the wage bump as the “largest-ever general wage increase,” in a video message to employees, Boeing said.
“Just as important, this contract deepens our commitment to the Pacific Northwest,” said Pope, adding that the new airplane pledge means “job security for generations to come.” Boeing has been under heavy scrutiny. In January, a fuselage panel blew out of an Alaska Airlines Boeing 737 Max plane mid-flight, necessitating an emergency landing.
That revived questions about safety and quality control after the company had seemingly made progress following deadly Max crashes in 2018 and 2019.The aerospace giant in March announced a management shakeup that included the exit of Dave Calhoun as CEO. Ortberg took the helm on Aug. 8.
However, workers have complained of retaliation after raising safety concerns.
These issues were spotlighted in a Senate hearing in April and at a National Transportation Safety Board hearing in August into the Alaska Airlines incident, with IAM representatives describing company safety and training programs as insufficient.
