Boeing and the union, which represents about 33,000 of its staff, has agreed to a brand new collective agreement just days before a costly strike could have begun on the aircraft maker's key factories.
The tentative agreement includes wage increases of 25 percent over 4 years and other improvements in health care costs and retirement advantages, said the International Association of Machinists and Aerospace Workers, which represents Boeing staff at factories within the Seattle area and Oregon. It also gives Boeing a commitment to construct its next plane within the Pacific Northwest, the union said.
Workers still should approve the deal, but avoiding the strike is a victory for brand new CEO Kelly Ortberg, who has promised to get the corporate back on solid footing amid its current safety and quality crisis.
“Financially, the company is in a difficult position due to many self-inflicted missteps. It is the IAM members who will get the company back on track,” the union said in an announcement on Sunday. “When an aircraft leaves the plant, our reputation is at stake. This proposal helps keep our legacy alive.”
A vote is planned for September 12, the union said.
The current collective agreement would have expired on Thursday and a direct strike wouldn’t have been possible. The union had pushed for wage increases of over 40 percent.
“The contract offer includes the largest overall wage increase ever, a lower share of medical costs to make health care more affordable, higher company contributions to retirement plans and improvements for a better work-life balance,” said Stephanie Pope, head of Boeing's industrial aircraft division.
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