Boeing and its largest union have reached an agreement on a new contract, averting a strike that could have disrupted aircraft production. The contract, if ratified, will see 33,000 workers represented by the International Association of Machinists and Aerospace Workers receive pay raises of 25% over four years, with average wages increasing by 33% due to seniority step increases. This is slightly below the 40% increase initially demanded by the union.
One of the key points of the agreement is Boeing's commitment to build its next plane in Washington state, likely by union members. In addition to the pay raises, workers will also receive $3,000 lump sum payments and a reduction in health care costs.
The president of the machinists' union outpost at Boeing described the proposal as the best contract negotiated in their history and recommended that members ratify it. Boeing's commercial airplanes division president highlighted that this contract includes the company's largest-ever general wage increase and emphasized the job security that building the next airliner in the Puget Sound area would bring.
The proposed contract is subject to union member ratification by late Thursday night Pacific time, after which a strike was looming. A two-part election has been scheduled for Thursday, where workers will vote on accepting the contract and authorizing a strike if they reject it.
A strike would have posed additional challenges for Boeing, which is facing financial difficulties and recently appointed a new CEO to lead a turnaround. The new CEO's responsibilities include addressing losses, improving the aircraft-manufacturing process, securing regulatory approval for the 777X jumbo jet, managing government contracts, reducing debt, and integrating a recent acquisition.
The new CEO has expressed a desire to improve relations with the machinists' union, recognizing the historically contentious nature of their relationship.
