Boeing offered a 25% pay increase for its staff over the next four years to prevent a walkout that could shut down its manufacturing lines. If approved, the agreement will be a major accomplishment for Boeing’s new CEO, Kelly Ortberg, who must improve the company’s reputation. Chief Operating Officer Stephanie Pope emphasized the deal’s benefits and referred to it as a historic proposal.
Representing over 30,000 employees, union representatives have encouraged members to back the proposal. They’ve been calling it the best bargain they have ever worked out. On Thursday, employees from Boeing’s Portland and Seattle offices will cast their votes on the accord. However, if the plan is rejected, the group will have to hold a second vote, and two-thirds of the members must approve the strike. Furthermore if members of the International Association of Machinists and Aerospace Workers (IAM) union vote in favor of the accord, it might prevent a future walkout on the production line. This would be Boeing and the union’s first comprehensive labor agreement in sixteen years. The existing deal is about to expire; it was first negotiated in 2008 after an eight-week strike and then renewed in 2014.
Boeing offered a 25% pay increase as part of the new agreement, which includes improved healthcare and retirement benefits. In addition, employees would have more influence over matters related to quality and safety. They will also get 12 weeks of paid parental leave. Boeing has committed to building its next commercial airplane in the Seattle area, provided that manufacture begins within the parameters of the agreement. Approving the new contract will keep the workers from walking off the production line. Along with this it will provide both Boeing and the employees with stability as they move forward.
