Boeing Reaches Tentative Deal with Union, Averts Potential Strike
Boeing and the International Association of Machinists and Aerospace Workers (IAMAW) have reached a tentative agreement that could prevent a looming strike, initially set to begin on Friday. The agreement, representing 33,000 employees across the West Coast, still requires approval from rank-and-file union members, who build Boeing’s commercial jets.
Union leadership expressed satisfaction with the deal, which they say aligns with their goals. “You sent us here to stand strong for your priorities, and we are proud to have done so,” IAMAW stated on its official website.
Under the agreement, Boeing has committed to providing a 25% wage increase over four years, improved 401(k) contributions, reduced employee healthcare costs, and increased paid time off. This deal is noted to be Boeing’s most significant pay raise for union workers. The agreement also promises enhanced job security, including a commitment to build Boeing’s next airplane at one of its union-represented plants in the Puget Sound region.
“This is a historic offer that addresses the needs of our employees and their families,” said Stephanie Pope, CEO of Boeing’s commercial airplane unit.
The union members, who work at Boeing plants in Seattle and Portland, Oregon, are set to vote on the agreement on Thursday. If rejected, a strike could still occur. However, union leaders have recommended that members vote in favour of the deal.
Boeing has faced several challenges in recent years, including financial losses following the grounding of the 737 Max, the COVID-19 pandemic’s impact on air travel, and quality concerns surrounding its aircraft. Despite these hurdles, the company’s leadership had indicated a strong desire to avoid a strike, acknowledging the union’s leverage in the negotiations.
The deal, if approved, would mark the end of Boeing’s first major contract negotiation in 16 years without a strike.
