Boeing said on Sunday it had reached a tentative agreement with a union representing more than 32,000 workers in the U.S. Pacific Northwest. This Boeing agreement with union is a deal that could help avert a possible crippling strike as early as September 13. The strike for pay has been set to stat this Friday.
The proposed Boeing four-year labor agreement agreement includes a general wage increase of 25%, 12 weeks of paid parental leave, and improved job security. This strike settlement agreement, would need to be approved on Thursday by Boeing factory workers near Seattle and Portland. The labor is represented by the International Association of Machinists and Aerospace Workers (IAM).
Union deal a relief for Boeing
An accepted deal would secure labor peace for Boeing at a time when the planemaker is burning cash and trying to raise production of its strongest-selling 737 MAX to a target rate of 38 aircraft a month by the year’s end. Boeing is wrestling with a quality crisis and faces scrutiny from regulators and customers. This was after a January incident when a door plug on a near-new MAX blew off an Alaska Air jetliner while in mid-air.
What union with get from the deal with Boeing
Although the union had asked for a 40% raise in their first full negotiation with Boeing in 16 years, it made other gains, like obtaining a seat at the table regarding the safety and quality of the production system.
“Although there was no way to achieve success on every single item, we can honestly say that this proposal is the best contract we’ve negotiated in our history,” the IAM union local representing the Boeing workers said in a statement.
It also secured a key commitment from the planemaker to produce its next commercial airplane program in the U.S. Pacific Northwest, if launched during the life of the agreement. It’s not clear when Boeing would launch its next aircraft.
Boeing’s biggest pay raise deal
Boeing said the agreement provides raises totaling 25% over the four-year life of the contract, improved contributions to 401(k) plans, reduced employee contributions for health insurance and increased time off.
The deal represents Boeing’s biggest pay raise for union members.
Boeing wanting to avoid strike
Company executives had conceded the union’s leverage in talks heading into the final round of negotiations after marathon talks. Former CEO Dave Calhoun had told investors in July that Boeing’s intention was to avoid a strike. This seemed to signal the company was willing to go to great lengths to avoid a work stoppage.
“We know wage asks will be big,” Calhoun said. “We’re not afraid to treat our employees well in this process. So, we’re just going to work as hard as we can not to have a strike.”
As per his successor, Kelly Ortberg, he wanted to “reset” relations with the union after meeting with their leader.
