A new labor agreement was reached between Boeing and the union that represents around 33,000 of its employees, only days before an expensive strike at the company’s biggest facilities might have started.
The International Association of Machinists and Aerospace Workers, which represents Boeing employees at its facilities in Oregon and the Seattle region, stated that the tentative deal includes additional improvements to health care expenses and retirement benefits in addition to 25% raises spread over four years.
According to the union, it also gets Boeing to promise to construct its next aircraft in the Pacific Northwest.
The agreement still needs to be approved by the workforce, but Kelly Ortberg, the company’s new CEO, has pledged to put the business back on stable ground while it navigates quality and safety issues.
The company’s numerous self-inflicted errors have put it in a difficult financial position. This firm will be put back on track by IAM members, the union stated in a statement on Sunday. “
Our reputation is at risk the moment an aircraft leaves the plant. This plan contributes to preserving our legacy. On September 12, a vote is planned, according to the union.
If a compromise couldn’t be struck by Thursday, the present agreement would have expired and a strike might have begun right away. The union has been advocating for hikes of over forty percent.
According to Stephanie Pope, CEO of Boeing’s commercial airplane division, “the contract offer provides the largest-ever general wage increase, lower medical cost share to make healthcare more affordable, greater company contributions toward your retirement, and improvements for a better work-life balance.”
