Boeing and its machinists’ union have agreed to terms of a new four-year employment contract, though the deal will not be final unless approved during a vote by union members scheduled for 12 September.
The agreement between the company and the International Association of Machinists (IAM) would increase workers’ average pay 25% over four years, the union and Boeing said on 8 September.
The deal also includes a commitment by Boeing to build its next new aircraft in the Puget Sound region – but only if Boeing’s board of directors approves the launch of an aircraft during the four-year contract’s term.
IAM’s current contract expires on 12 September. Members will strike on 13 September if they reject the deal, the union has said.
“Your union bargaining committee is recommending accepting this proposal,” IAM leaders said in an 8 September letter to members.
“Take these next few days and look over every change in this proposal prior to your vote on September 12,” the letter adds. “We are prepared to fight if needed, but we believe this proposal will benefit all our members and our future.”
The agreement covers some 33,000 workers, including those represented by IAM’s Washington state District 751 and its W24 division in Portland, Oregon. District 751’s members work at Boeing’s 767 and 777 production site in Everett and its 737 assembly facility in Renton. That work includes production of 737NG-derived P-8 military surveillance jets and of 767-based military refuelling tankers. Some IAM members also work at Boeing Global Services and in corporate jobs.
“We have reached a tentative agreement with the union on a historic offer that takes care of you and your family,” Boeing says of the deal. “The contract offer provides the largest-ever general wage increase, lower medical-cost share to make healthcare more affordable, greater company contributions toward your retirement and improvements for a better work-life balance.”
“Just as important, this contract deepens our commitment to the Pacific Northwest,” Boeing adds. “Our team in the Puget Sound region will build Boeing’s next new airplane. This would go along with our other flagship models, meaning job security for generations to come.”
If approve by members, the agreement would head off what observers suspect would be a costly strike for Boeing. If workers walk, Boeing would seemingly need to halt 737, 767 and 777 production.
The tentative agreement would provide an immediate average wage gain of 11%, followed by average raises of 4% in 2025 and in 2026, and 6% in 2027. Workers would also receive a one-time $3,000 payment shortly after ratifying the deal.
IAM had entered negotiations seeking 40% pay gains.
“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 says of the pending deal.
Boeing’s commitment to build the next new aircraft in the Puget Sound region would apply for the life of that programme and encompass initial and derivative models, the proposed contract says. It would cover Boeing’s final assembly, wing manufacturing, assembly of major components, and aircraft deliveries.
“Financially, the company finds itself in a tough position due to many self-inflicted missteps. It is IAM members who will bring this company back on track,” the union’s letter to members says.
