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Boeing has reached a tentative agreement with unions representing over 33,000 workers, aiming to prevent a strike that could stop production when the current contract ends later this week.
The proposed deal, pending a union vote, includes a 25% pay raise over four years, along with better health care and retirement benefits.
Boeing Reaches Tentative Deal with Unions
The agreement would be the first complete contract between Boeing and the unions in 16 years. Additionally, Boeing has committed to building its next commercial airplane in the Seattle and Portland areas, which could help secure jobs in those regions, according to the New York Times.
The unions, mainly District 751 and the smaller District W24 of the International Association of Machinists and Aerospace Workers, have encouraged their members to approve the deal. District 751 represents the majority of Boeing's commercial and military aircraft workers, a majority in Seattle.
If union members approve the deal, each worker will receive a $3,000 bonus, increased contributions to their 401(k) plans, and better work-life balance with less mandatory overtime.
If the workers reject the contract, they might strike as soon as Friday (September 13). They will vote on two things: whether to accept the contract and whether to strike if the deal is turned down.
A strike can still happen if two-thirds of the members agree, even if a majority reject the deal. Boeing's new CEO, Kelly Ortberg, who started just a month ago, is dealing with this as one of his first major challenges. Ortberg took charge after an incident in January, where a panel fell off a Boeing 737 Max jet, sparking renewed safety concerns.
Although no one was hurt, it brought back worries about Boeing's quality control that first emerged after two deadly crashes involving the 737 Max several years ago. These incidents have played a part in the company's financial troubles.
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Boeing's Ongoing Issues
Union members are set to vote on Thursday (September 12), just before the current contract expires at midnight. Voting will take place at multiple locations across Washington and one in California.
If the contract is rejected and a strike is approved, it could worsen Boeing's financial struggles, which have already caused the company to face multiple years of losses.
AP News reports that if Boeing can avoid a strike, it will be a huge relief for the company, which has been struggling with financial problems like expensive contracts, debt, and other losses.
A strike would stop production and delay airplane deliveries, hurting Boeing's cash flow. Past strikes at Boeing, like the eight-week one in 2008, have caused major disruptions, costing the company about $100 million a day in lost revenue.
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