A Boeing employees works outside of the cockpit of a Boeing 737 MAX 8 airplane in the company’s factory, on March 27, 2019 in Renton, Washington.
Stephen Brashear | Getty Images
Boeing and the union that represents some 33,000 of its workers have struck a new labor deal, just days before a costly strike could have begun at the plane maker’s main factories.
The tentative agreement includes 25% raises over four years and other improvements to health-care costs and retirement benefits, said the International Association of Machinists and Aerospace Workers, which represents Boeing’s workers at factories in the Seattle area and in Oregon. It also secures a commitment from Boeing to build its next airplane in the Pacific Northwest, the union said.
Workers still need to approve the deal, but avoiding the strike is a win for new CEO Kelly Ortberg who has vowed to get the company back on solid footing as it wades through safety and quality crises.
“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 union said in a statement on Sunday. “When a plane leaves the factory, it’s our reputation on the line. This proposal helps keep our legacy alive.”
A vote is scheduled for Sept. 12, the union said.
The current agreement was set to expire after Thursday and a strike could have started immediately if no deal was reached. The union had been pushing for more than 40% raises.
“The contract offer provides the largest-ever general wage increase, lower medical cost share to make healthcare more affordable, greater company contributions toward your retirement, and improvements for a better work-life balance,” said Stephanie Pope, chief executive of Boeing’s commercial airplane unit.
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