Boeing's new CEO has successfully negotiated a deal with the union, averting a strike and boosting the company's reputation after a series of setbacks.
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| Boeing has reached a tentative agreement with its union to avoid a crippling strike, securing a significant wage increase and other benefits for workers. Symbolic image |
Arlington County, Virginia, USA - September 09, 2024:
Boeing has reached a tentative agreement with its union, averting a potential strike that could have crippled operations in the Seattle region.
The deal, which still requires ratification by union members, includes a significant wage increase of 25% over four years. This substantial pay hike is a major victory for the International Association of Machinists and Aerospace Workers (IAM) District 751, which represents over 33,000 Boeing employees.
In addition to the wage increase, the contract also offers other benefits, such as lower healthcare costs, reduced mandatory overtime, and 12 weeks of paid parental leave. A key concession from Boeing is its commitment to build its next new airplane in the Puget Sound region of Washington state if the contract is ratified this week.
The agreement comes at a critical time for Boeing, which has been facing challenges in recent years, including safety issues and financial setbacks. The new CEO, Kelly Ortberg, has made it a priority to improve relations with the union and restore the company's reputation.
While the negotiations were tense, with the union expressing concerns about the distance between the two sides just days ago, the final agreement demonstrates the power of collective bargaining. The IAM president, Jon Holden, praised the union's solidarity and unity in securing a favorable contract.
The ratification of this contract would not only avoid a disruptive strike but also signal a positive step forward for Boeing. It would follow in the footsteps of UPS, which narrowly averted a strike in 2023 after reaching an agreement with the Teamsters union.