- Boeing and its Seattle-area workers' union reached a labor deal that averts a strike that could have started within a week.
- The deal includes 25% in pay increases over four years.
- The union represents more than 30,000 workers in Boeing's factories that build its airplanes.
Boeing and the union that represents some 33,000 of its workers have struck a new labor deal, just days before a costly strike could have begun at the plane maker's main factories.
The tentative agreement includes 25% raises over four years and other improvements to health-care costs and retirement benefits, said the International Association of Machinists and Aerospace Workers, which represents Boeing's workers at factories in the Seattle area and in Oregon. It also secures a commitment from Boeing to build its next airplane in the Pacific Northwest, the union said.
Workers still need to approve the deal, but avoiding the strike is a win for new CEO Kelly Ortberg who has vowed to get the company back on solid footing as it wades through safety and quality crises.
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"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 said in a statement on Sunday. "When a plane leaves the factory, it's our reputation on the line. This proposal helps keep our legacy alive."
A vote is scheduled for Sept. 12, the union said.
The current agreement was set to expire after Thursday and a strike could have started immediately if no deal was reached. The union had been pushing for more than 40% raises.
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"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," said Stephanie Pope, chief executive of Boeing's commercial airplane unit.
