Boeing dodges another bullet, avoids strike with 25% pay increase
Boeing has successfully negotiated a deal with its workers to prevent a potentially damaging strike. The agreement includes a significant 25% wage increase and an assurance to construct its upcoming commercial airplane at its Seattle area facilities. The agreement was struck with the International Association of Machinists and Aerospace Workers (IAM), which represents approximately 32,000 Boeing employees. The contract also includes measures to enhance retirement benefits and grants the union increased authority in reviewing safety and quality procedures.
IAM hails contract as 'best ever' negotiated
The local IAM branch has lauded the agreement, stating, "Although there was no way to achieve success on every single item, we can honestly say that this proposal is the best contract we've negotiated in our history." The union had initially demanded a 40% wage increase. Stephanie Pope, CEO of Boeing's commercial aircraft division, expressed that the deal ensures "job security for generations to come."
Strike threat looms despite tentative agreement
Despite the tentative agreement, the threat of a strike still looms. Workers had threatened to initiate a crippling strike on September 13 if their demands were not met. A work stoppage could still occur if over two-thirds of employees express dissatisfaction with the deal. The contract is set to be ratified by union members on Thursday, pending their approval.
Boeing's financial struggles and future challenges
Boeing has been grappling with significant financial challenges following a series of fatal crashes involving its 737 MAX. The company has paid $20 billion in fines and lost an additional $60 billion due to canceled orders for the 737 MAX. In July, Boeing reported a Q2 loss of $1.44 billion. Despite these difficulties, IAM District 751 President Jon Holden remains optimistic about securing a strong contract for the union.
