Boeing is offering its staff a 25% pay rise over four years in a bid to avoid a strike that could potentially shut down its assembly lines as early as Friday.
Union leaders representing more than 30,000 employees have urged the workers to support the proposal, describing it as the best contract they had ever negotiated.
Boeing workers in the Seattle and Portland region are set to vote on the deal on Thursday.
If the deal is rejected, however, a second ballot will need to be approved by two-thirds of union members for a strike to go ahead.
In a video message to Boeing workers, the aerospace giant’s chief operating officer, Stephanie Pope, described the proposal as a “historic offer”.
The current contract between Boeing and the unions was first reached in 2008 following an eight-week strike.
Although the preliminary deal did not match the union’s initial target of a 40% pay rise, negotiators still praised it and advised members to accept it.
“We can honestly say that this proposal is the best contract we’ve negotiated in our history,” the IAM said in a statement.
Aside from the pay rise, the deal offers workers improved healthcare and retirement benefits, and 12 weeks of paid parental leave.
The deal also gives the union members more say on safety and quality issues.
In an attempt to stave off a strike that might force the company to close its assembly lines as early as Friday, Boeing is providing a 25 percent pay increase to its employees spread over four years.
Union leaders, who speak for over 30,000 workers, have called for workers’ support of the proposal, calling it the best contract they have ever negotiated.
Should the agreement be accepted, it would represent a significant accomplishment for Kelly Ortberg, the recently appointed CEO of Boeing, who is under pressure to address the company’s problems with quality and reputation.
There will be a vote on the deal on Thursday among Boeing employees in the Portland and Seattle areas. However, in order for a strike to take place in the event that the agreement is rejected, a second ballot must be authorized by two-thirds of union members.
Stephanie Pope, the Chief Operating Officer of Boeing, referred to the proposal as a “historic offer” in a video message sent to the company’s employees.
Should the International Association of Machinists and Aerospace Workers (IAM) union members ratify it, it would mark the first comprehensive labor agreement between the company and the unions in sixteen years.
After an eight-week strike, the unions and Boeing first came to an agreement on the current contract in 2008. It was agreed to be extended by the two parties in 2014, and it is now scheduled to expire later this week.
Negotiators applauded the preliminary agreement and urged members to accept it, despite the fact that it fell short of the union’s original demand for a 40 percent pay increase.
“With all honesty, this proposal is the best contract we have ever negotiated,” the IAM declared in a release.
In addition to increased pay, the agreement provides employees with better retirement and healthcare benefits as well as 12 weeks of paid parental leave.
In the event that the project is initiated during the duration of the contract, Boeing also pledges to construct its subsequent commercial aircraft in the Seattle region. When will the company reveal its upcoming aircraft?
Additionally, the agreement increases the union members’ influence over matters of quality and safety.
“The company’s numerous self-inflicted errors have put it in a difficult financial position. Referring to Boeing’s recent crises, the union negotiators declared, “IAM members are what will put this company back on track.”.
Last month, Mr. Ortberg, an experienced engineer with experience in the aerospace industry, was appointed as Boeing’s new CEO.
His hiring coincided with the company’s mounting financial losses and ongoing efforts to mend its reputation after two deadly accidents that occurred five years prior and several in-flight mishaps.
