Boeing, union reach tentative deal ahead of possible strike.
Boeing and its largest union IAM have reached a tentative agreement, averting the threat of a strike from September 13.
Under the proposed four-year contract, over 33,000 represented workers will receive a 25% general wage increase and monthly lump sum payments of $3,000. Healthcare costs will also see a reduction.
The union had initially sought a 40% raise in the first full negotiations with Boeing in 16 years. However, other gains around job security, production quality, and safety were made.
The deal will raise average wages by 33% and commit to building Boeing’s next airplane program in the Seattle area if launched during the contract period. It now needs member ratification by Thursday.
Analysts say the pact marks a win for new CEO Kelly Ortberg in improving labor relations and focusing on future development – priorities to change Boeing’s culture.
Labor Secretary Julie Su had urged a fair resolution after engaging with Ortberg and union chief Jon Holden. The FAA is also overseeing Boeing on quality enhancements.
If approved, the agreement will bring labor peace as Boeing tries ramping up 737 MAX output amid regulatory scrutiny after a recent mid-air incident. It also dodges potential strike turbulence ahead of the US presidential polls.
