Washington [US], September 9: Boeing agreed on September 8 to a new preliminary contract with union leaders on wage increases, a move that helped avert a strike in Seattle, US.
Boeing and the International Association of Machinists ( IAM ), which represents more than 30,000 employees, have agreed to a 25 percent pay increase over the course of a four-year contract.
The first comprehensive labor agreement in 16 years will also include reduced health care costs for employees, reduced mandatory overtime, and 12 weeks of paid parental leave. The two sides also pledged to build a new Boeing aircraft manufacturing facility in the Puget Sound region of Washington state The agreement is subject to ratification by Boeing employees, according to The Business Times .
IAM District 751 President Jon Holden called the deal "the best deal ever" thanks to the union's unity and solidarity, and urged members to carefully review the deal. According to Reuters, an approved deal would ensure a stable environment for Boeing at a time when the company is spending heavily to try to increase production of its best-selling 737 MAX to about 38 planes a month by the end of the year.
If workers agree to the contract, Boeing would follow in the footsteps of United Parcel Service (UPS), the supply chain management giant that avoided a strike in July 2023 after reaching an agreement with the Teamsters union. However, Boeing workers can reject the deal if they do not receive majority support. A strike could occur if two-thirds of the workers support a strike in a second vote.
In a recent message to senior members, IAM representatives said that although they could not achieve their goals in all categories, the contract just agreed with Boeing was "the best deal ever" thanks to the union's solidarity and unity, and called on members to carefully review this agreement.
The tentative deal comes just weeks after new Boeing CEO Kelly Ortberg took office, tasked with restoring the reputation and standing of the iconic US aircraft maker. Boeing has been hit by a series of fatal crashes linked to design flaws in its best-selling jetliner, allegations that the company prioritized profits and volume over quality and safety, and has been under financial pressure after posting a $1.44 billion net loss in the second quarter of 2024.
During a meeting with IAM Holden union president and other union leaders in early August, Boeing CEO Kelly Ortberg announced his desire to reset the relationship between the company and the union.
Source: Thanh Nien Newspaper