Boeing is offering its employees a significant 25% pay increase over four years in a bid to avert a potential strike that could disrupt its assembly lines as early as Friday. The proposed deal has been praised by union leaders representing more than 30,000 workers as the best contract they have ever negotiated. They are urging members to vote in favor of the agreement, set to be decided by Boeing workers in the Seattle and Portland regions on Thursday.
The proposed deal marks a crucial moment for Boeing’s new chief executive, Kelly Ortberg, who is under pressure to address the company’s quality and reputational issues. Should the agreement be approved, it would be the first full labor contract between Boeing and the unions in 16 years.
In a video message to employees, Boeing’s chief operating officer, Stephanie Pope, called the offer “historic,” underscoring its importance. While the union initially sought a 40% pay increase, negotiators praised the 25% proposal for also including improved healthcare and retirement benefits, as well as a promise from Boeing to build its next commercial aircraft in the Seattle area.
The deal also gives union members more input on safety and quality issues, addressing long-standing concerns following Boeing’s recent operational and financial challenges. Boeing has faced increasing scrutiny due to multiple incidents, including two fatal accidents five years ago, and has struggled to regain its footing.
Union negotiators, represented by the International Association of Machinists and Aerospace Workers (IAM), acknowledged Boeing’s tough financial position but emphasised that it will be IAM members who “bring this company back on track.”
The tentative agreement represents a pivotal moment for Boeing’s leadership under Ortberg, who assumed the role of CEO just last month. His appointment comes as Boeing continues to grapple with financial losses and the challenge of restoring its once-sterling reputation in the aerospace industry.
Melissa Enoch
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