Boeing is offering its employees a 25% wage increase over a four-year contract in an effort to avoid a walkout that may shut down its manufacturing lines.
Union officials representing over 30,000 employees have urged workers to embrace the proposal, calling it the greatest contract they have ever negotiated.
If accepted, the accord would represent a significant success for Kelly Ortberg, Boeing’s new CEO, who is under pressure to address the company’s quality and reputational difficulties.
Boeing employees in the Seattle and Portland areas are scheduled to vote on the deal on Thursday. A strike is still possible if two-thirds of union members endorse it in a separate ballot.
Stephanie Pope, Boeing’s chief operating officer, referred to the proposition as a “historic offer” in a video greeting to employees.
If union members approve, it will be the first full labor agreement between the company and the unions in 16 years.
Although the tentative agreement did not meet the union’s initial goal of a 40% wage increase, negotiators welcomed it and recommended members to embrace it.
“We can honestly say that this proposal is the best contract we’ve negotiated in our history,” the International Association of Machinists and Aerospace Workers (IAM) stated.
Aside from the pay increase, the agreement provides employees with greater healthcare and retirement benefits, as well as a pledge from Boeing to manufacture its next commercial airplane in the Seattle area.
It also provides union members with a greater say in safety and quality issues.
“Financially, the corporation is in a difficult condition due to numerous self-inflicted mistakes. “IAM members will bring this company back on track,” the negotiators added, alluding to Boeing’s recent issues.
Mr Ortberg, an aerospace industry veteran and engineer, took over as Boeing’s new CEO last month. His appointment came as the firm disclosed deeper financial losses and continued to fight to rebuild its brand following recent in-flight problems and two tragic accidents five years ago.
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