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Boeing and union reach a labor deal, potentially averting a strike

INBV News by INBV News
September 8, 2024
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Boeing and union reach a labor deal, potentially averting a strike
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A Boeing employees works outside of the cockpit of a Boeing 737 MAX 8 airplane in the corporate’s factory, on March 27, 2019 in Renton, Washington.

Stephen Brashear | Getty Images

Boeing and the union that represents some 33,000 of its staff have struck a recent labor deal, just days before a costly strike could have begun on the plane maker’s fundamental factories.

The tentative agreement includes 25% raises over 4 years and other improvements to health-care costs and retirement advantages, said the International Association of Machinists and Aerospace Staff, which represents Boeing’s staff at factories within the Seattle area and in Oregon. It also secures a commitment from Boeing to construct its next airplane within the Pacific Northwest, the union said.

Staff still have to approve the deal, but avoiding the strike is a win for brand new CEO Kelly Ortberg who has vowed to get the corporate back on solid footing because it wades through safety and quality crises.

“Financially, the corporate finds itself in a tricky position as a consequence of many self-inflicted missteps. It’s IAM members who will bring this company back heading in the right direction,” the union said in an announcement on Sunday. “When a plane leaves the factory, it’s our popularity on the road. This proposal helps keep our legacy alive.”

A vote is scheduled for Sept. 12, the union said.

The present agreement was set to run out after Thursday and a strike could have began immediately if no deal was reached. The union had been pushing for greater than 40% raises.

“The contract offer provides the largest-ever general wage increase, lower medical cost share to make healthcare more cost-effective, greater company contributions toward your retirement, and enhancements for a greater work-life balance,” said Stephanie Pope, chief executive of Boeing’s industrial airplane unit.

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