Boeing Co. has negotiated a labor agreement with the International Association of Machinists and Aerospace Workers that, if ratified, will cover more than 33,000 workers in Washington and Oregon over four years. The union had raised the prospect of a strike when it sought authorization for a labor action earlier this year.
The agreement with IAM covers workers in the Puget Sound region of Washington State and some in Oregon and California. Most of the workers are employed by Boeing Commercial Airplanes; some by Boeing Defense workers and some employees in Global Services and Corporate operations are covered too.
Workers are scheduled to vote on the agreement Thursday, September 12, with the IAM recommending ratification. The vote will also include another strike-approval motion, should the contract proposal fail to pass.
“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,” according to a statement by Boeing Commercial Airplanes president and CEO Stephanie Pope.
The deal provides $3,000 lump-sum payments and overall 25% pay increases over the four-year term, which reportedly is less than the IAM had sought.
On the other hand, Boeing accepted the union’s demand that assembly for its 737, 747, and 777 programs remain in the Pacific Northwest. Boeing’s other major program, the 787 Dreamliner, is assembled in North Charleston, S.C.
“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,” according to a statement posted by IAM District 751 president Jon Holden.
The proposal represents the first negotiated agreement between Boeing and the union since 2008. That contract was extended with employee-approved renewals in 2011 and 2014 – and then the current, eight-year extension concluded in 2016.
