Boeing announced Sunday it reached a tentative agreement with its labor union that will, if it passes, prevent a disastrous strike for the company that could have halted its commercial aircraft production.
Boeing and about 33,000 union members, most of whom are factory workers, struck a deal that included pay raises and expanded retirement benefits. The company offered 25% pay increases to all employees during the life of their contracts, including lump sum payments as soon as the union agreement is ratified.
The agreement will be finalized as long as it passes a union vote, which is set for Sept. 12.
Union leaders expressed optimism about the deal in a public letter, saying it was the “best” one they had ever made with Boeing.
“Negotiations are a give and take, and 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 leaders wrote.
The deal came after weeks of tense negotiations and a growing threat that the union members would go on strike. It also followed the company coming under intense scrutiny this year after a door plug blew off an Alaska Airlines 737 Max 9 while in the air. While no one was hurt, the Seattle Times found that the incident was a result of multiple factory lapses.
“Financially, the company finds itself in a tough position due to many self-inflicted missteps,” the union leaders wrote. “It is IAM members who will bring this company back on track. … Ultimately, we love this company and couldn’t be more proud of the jobs we do or the products we build. What we do defines who we are – these crafts are our livelihoods. When a plane leaves the factory, it’s our reputation on the line. This proposal helps keep our legacy alive.”
Another aspect of the agreement involved Boeing vowing to centralize production of its next airplane model in its primary factory in Washington state. The provision comes after union members became disgruntled more than a decade ago when the company moved production of its 787 Dreamliner to its nonunionized plant in Charleston, South Carolina.
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Boeing Commercial Airplanes CEO Stephanie Pope said in a statement that this promise would provide “job security for generations to come.”
“This contract deepens our commitment to the Pacific Northwest. Boeing’s roots are here in Washington,” Pope said.