Additional Coverage:
**Boeing, Union Strike Deal to Avert Production Halt on New Contract**
Boeing and its largest union have reached a tentative agreement on a new contract that could prevent a strike set to halt aircraft production by the end of next week. The deal, if ratified, will see approximately 33,000 workers from the International Association of Machinists and Aerospace Workers receive a 25% pay raise over four years, with average wages increasing by 33% due to seniority step increases. Although this is less than the 40% initially demanded by the union, it marks significant progress.
A crucial point in the negotiations was Boeing’s agreement to build its next aircraft in Washington state, likely with union labor. Other benefits included in the contract are $3,000 lump sum payments for workers and a reduction in their share of health care costs.
IAM District 751 President Jon Holden described the proposal as the best contract ever negotiated in the union’s history, despite some compromises. He confirmed that the union’s bargaining committee is urging members to ratify the contract.
Boeing’s commercial airplanes division President Stephanie Pope highlighted that the contract contains the company’s largest-ever general wage increase. She added that the commitment to build Boeing’s next new plane in the Puget Sound area ensures long-term job security.
The contract’s approval depends on union members voting by late Thursday night Pacific time. If rejected, the union has threatened to strike. Votes will take place at multiple locations in Washington state and one in California.
A strike would add further challenges for Boeing, which has been struggling financially and recently appointed Kelly Ortberg as its new CEO. Ortberg’s tasks include reversing significant losses since 2019, addressing manufacturing inconsistencies, securing regulatory approval for the 777X, managing over-budget government contracts, paying down substantial debt, and integrating newly acquired Spirit AeroSystems.
Ortberg has expressed a willingness to improve relationships with the union, recognizing the historically contentious nature of their interactions. According to TD Cowen aerospace analyst Cai von Rumohr, Ortberg is keen on fostering better union relations.