Boeing and the International Association of Machinists and Aerospace Workers have reached a new labour agreement, averting a potential strike.
The deal includes a 25% wage increase over four years, improvements in health-care costs and retirement benefits, and a commitment from Boeing to manufacture its next airplane in the Pacific Northwest.
Meanwhile, the agreement must still be approved by the workers.
However, avoiding the strike is a significant achievement for Boeing’s new CEO, Kelly Ortberg.
He said his focus is on stabilizing the company amid ongoing safety and quality issues.
“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.
“When a plane leaves the factory, it’s our reputation on the line. This proposal helps keep our legacy alive,” the union said in a statement on Sunday.
The existing agreement was due to expire after Thursday, with a potential strike looming if a new deal wasn’t finalized.
The union had initially sought over 40% raises, but the agreement reached includes a 25% increase over four years.
The executive of Boeing’s commercial airplane unit, Stephanie Pope said “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.”
