Seattle, 9 September 2024 (FinanceFlashNews) – In a strategic move to avert a potential strike, Boeing has offered its employees a 25% pay increase over the next four years. This offer comes just before a crucial deadline, potentially shutting down production lines as soon as Friday.
The proposal, endorsed by union leaders representing over 30,000 employees, is being hailed as the most favorable contract ever negotiated by the union. If approved, it will be a significant achievement for Boeing’s new CEO, Kelly Ortberg, who is under pressure to resolve ongoing quality and reputation issues.
Workers in Seattle and Portland are scheduled to vote on the agreement this Thursday. Should the proposal be rejected, a subsequent vote would be required, needing two-thirds approval from union members to authorize a strike.
Stephanie Pope, Boeing’s Chief Operating Officer, described the offer as “historic” in a video message to employees. Approval by the International Association of Machinists and Aerospace Workers (IAM) would mark the first comprehensive labor agreement with Boeing in 16 years.
The current contract, which originated in 2008 following an eight-week strike and was extended in 2014, is set to expire this week. Despite falling short of the union’s initial 40% pay increase target, the deal includes enhanced healthcare, retirement benefits, and 12 weeks of paid parental leave.
Additionally, Boeing has committed to building its next commercial aircraft in the Seattle area if the project begins during the contract’s term. The timeline for this new jet’s announcement remains unclear.
The deal also provides union members with increased influence over safety and quality matters.
Source: BBC News
Key Keywords: Boeing, pay increase, strike, Kelly Ortberg, IAM, Seattle, Portland, Stephanie Pope, labor agreement, healthcare, retirement benefits, paid parental leave.
