Boeing offers staff 25% pay hike in bid to avoid strike
Boeing is proposing a 25% pay increase for its employees over four years to prevent a strike that could disrupt its assembly lines as early as Friday.
Union leaders representing over 30,000 workers are urging their members to back the proposal, calling it the most favorable contract they’ve ever negotiated.
Approval of this agreement would mark a significant achievement for Boeing’s new CEO, Kelly Ortberg, who is under pressure to address the company’s quality and reputation issues.
Boeing employees in the Seattle and Portland areas will vote on the proposal Thursday. A strike could still occur if two-thirds of union members approve it in a separate vote.
In a video message to employees, Boeing’s Chief Operating Officer, Stephanie Pope, labeled the offer as a “historic” one.
If ratified, this would be the first comprehensive labor agreement between Boeing and the unions in 16 years.
Aside from the pay bump, the deal also offers workers improved retirement benefits and a commitment by Boeing to build its next commercial airplane in the Seattle area.
“We can honestly say that this proposal is the best contract we’ve negotiated in our history,” said a statement from the International Association of Machinists and Aerospace Workers (IAM).
“Financially, the company finds itself in a tough position due to many self-inflicted missteps. It is IAM members who will bring this company back on track,” the negotiators said, referring to the safety and quality crises faced by Boeing in recent years.
Mr Ortberg, an aerospace industry veteran and engineer, took over as Boeing’s new chief executive last month.
His appointment came as the firm reported deepening financial losses and continued to struggle to repair its reputation following recent in-flight incidents and two fatal accidents five years ago.
