Boeing Workers Vote on New Contract, Strike Possible

Boeing workers are set to vote today on a new labor contract that could significantly impact the company’s production plans. The tentative agreement, unveiled earlier this week, includes a 25% wage increase over the next four years and improvements to health-care and retirement benefits. The current contract expires at midnight on Thursday in Washington.

The agreement, reached between Boeing and the International Association of Machinists and Aerospace Workers (IAM), also includes a commitment from Boeing to build its next aircraft in the Seattle area. This deal follows intense negotiations and comes as Boeing aims to ramp up production and address safety and quality issues.

Boeing CEO Kelly Ortberg, who is just over a month into his role, has been actively engaging with employees in Renton and Everett, Washington, where Boeing’s main factories are located. Ortberg has emphasized the importance of the agreement for securing the company’s future, despite past frustrations and challenges.

The union, which represents approximately 33,000 Boeing factory workers in the Seattle area and Oregon, initially sought a 40% pay raise. However, the proposed 25% increase aligns with recent union agreements in other industries, such as the United Auto Workers’ deals with major automakers. If approved, top pay for IAM workers at Boeing will rise to $57.43 an hour, with potential total increases of more than 42% over the contract’s term. Current average annual pay for machinists at Boeing is $75,608, expected to increase to $106,350 by the contract’s end.

If workers reject the agreement and two-thirds vote in favor of a strike, a work stoppage would begin after midnight on Friday. Otherwise, the new contract will automatically go into effect. The outcome of today’s vote could determine whether Boeing will face a potentially crippling strike, further impacting its recovery efforts and relationships with customers.

Polls close at 6 p.m. PT today, with the results likely to influence Boeing’s operational and financial trajectory.

Related news: https://airguide.info/?s=Boeing

Sources: AirGuide Business airguide.info, bing.com, cnbc.com