Boeing reaches labour deal with 25% pay rise

Boeing reached on Sunday a tentative agreement with a union representing over 32,000 workers in the US, entailing a 25 per cent pay increase. It also involves Boeing’s commitment to build the next commercial airplane in the Seattle area, could help avert a potential strike.

The proposed four-year agreement is a significant victory for new Boeing CEO Kelly Ortberg, who took over the company last month. It also includes improved benefits such as paid parental leave, job security, and enhanced retirement plans. It involves 12 weeks of paid parental leave, improved job security, better retirement benefits, and other benefits.

“As part of the contract, our team in the Puget Sound region will build Boeing’s next new airplane. This would go along with our other flagship models, meaning job security for generations to come,” Boeing Commercial Airplanes CEO Stephanie Pope said in an employee message.

The deal must be ratified by Boeing factory workers represented by the International Association of Machinists and Aerospace Workers (IAM) by Thursday. If approved, it would secure labour peace for Boeing at a crucial time when the company is facing challenges and trying to increase production of its 737 MAX jetliner.

The agreement also addresses concerns about Boeing’s quality control and safety practices. Following a recent incident involving a door panel blowing off a 737 MAX jetliner, the Federal Aviation Administration has increased oversight of the company.

The deal demonstrates Boeing’s commitment to improving labour relations and focusing on future growth.

Although the union were seeking a 40 per cent raise in their first full negotiation with Boeing in 16 years, it made other dramatic gains, including getting significant input in the safety and quality of the production system.

“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,” a statement by IAM union local representing the Boeing workers read.

The talks had been watched by members of President Joe Biden’s administration, with labour secretary Julie Su last week asking the sides in an interview with Reuters to get a “fair contract.” Su had spoken with both Ortberg, a source with knowledge said, and union local head Jon Holden.

Attribution: Reuters