Boeing workers are currently voting on a new labor contract that could potentially lead to a strike if the deal is rejected. The agreement, which was unveiled on Sunday by the International Association of Machinists and Aerospace Workers and Boeing, includes a 25% wage increase and improvements to health-care and retirement benefits. Additionally, Boeing has committed to building its next aircraft in the Seattle area.
The vote is a significant test for CEO Kelly Ortberg, who recently assumed the role and is responsible for stabilizing production and addressing safety and quality issues. Ortberg has been engaging with employees in Renton and Everett, Washington, where Boeing’s main factories are located.
Ortberg acknowledges the passionate reaction to the tentative agreement and urges employees not to let past frustrations hinder the opportunity to secure their future together. The union, representing approximately 33,000 Boeing factory workers, had originally sought a 40% pay raise, but the 25% increase is in line with the United Auto Workers’ deal from last year.
If approved, the new contract would follow a trend of union-negotiated pay increases across various industries. The IAM District 751 district president, Jon Holden, wrote to members, acknowledging that they had achieved everything possible in bargaining and recommended accepting the deal. However, he emphasized that the decision ultimately rests with the workers, and the union will support their choice.
Under the new contract, the top pay for IAM workers at Boeing would rise to $57.43 an hour, with potential increases of more than 42% due to cost-of-living adjustments. Boeing reports that the average annual pay for machinists is currently $75,608, which would increase to $106,350 over the four-year contract.
If the contract is rejected and two-thirds of workers vote in favor of a strike, a work stoppage will commence. However, if less than two-thirds vote to strike, the contract will automatically go into effect.
Ortberg emphasizes the challenging period Boeing is currently facing due to past mistakes and highlights the importance of working together to get back on track. He warns that a strike would jeopardize the shared recovery, further eroding trust with customers and hindering the company’s ability to determine its future.
The polls are set to close at 6 p.m. PT, and the results will determine the course of action for Boeing and its workers.
