Boeing faces strike threat as workers vote on new contract | Wilnesh News

boeing company Workers will vote on a new labor contract on Thursday, raising the possibility of a serious strike if workers decide to reject the deal as the plane maker tries to boost output.

The tentative agreement between the International Association of Machinists and Aerospace Workers and the company announced Sunday includes a 25% wage increase and other improvements to health care and retirement benefits. Boeing has also committed to building its next generation aircraft in the Seattle area.

The vote is the first major test for Chief Executive Kelly Ortberg, who said in a staff note Wednesday that he had discussed it with employees in Renton, Wash., where Boeing’s main plants are located, and Everett, Wash. signed this contract.

Ortberg, who has been in the top job at the manufacturer for just over a month, has been tasked with stabilizing production and eliminating safety flaws and quality defects that emerged after a door panel burst earlier in the year.

“I know the response to the tentative agreement we have reached with IAM has been overwhelming,” he wrote in a staff note. “I understand and respect that enthusiasm, but I ask that you do not sacrifice the setbacks of the past at the expense of the future we secure together. opportunity.”

The union, which represents about 33,000 Boeing factory workers in the Seattle area and Oregon, is demanding a pay increase of about 40%. But a 25% increase would be in line with an agreement reached by the United Auto Workers after a strike last year. FordGeneral Motors and Chrysler parent company Stellantis.

If approved, the Boeing deal would follow a series of union negotiations for wage increases in industries including Hollywood and airlines.

“We have achieved everything we have bargained for except the strike,” Jon Holden, president of IAM District 751, wrote in a letter to members on Monday. “We are recommending acceptance because there is no guarantee that we will achieve anything more in the strike. Results. But it’s your decision and it’s one we will protect and support no matter what.”

When the new contract takes effect, the maximum wage for Boeing IAM employees will rise to $57.43 per hour. Including some cost-of-living adjustments, the increase could be more than 42%, according to the union. Boeing said the average annual salary for machinists is currently $75,608, rising to $106,350 after the four-year contract ends.

If the deal is rejected and two-thirds of workers vote to strike, a shutdown in Washington would begin after midnight on Friday. The union said the contract would automatically come into effect if less than two-thirds voted in favor of a strike after the contract was rejected.

“It’s no secret that our business is in a difficult time for Boeing, in part because of the mistakes we’ve made in the past,” Ortberg said in the report. “Working together, I know we are It’s possible to get back on track, but a strike would put our shared recovery at risk, further eroding trust with our customers and damaging our ability to decide our future together.”

Voting will close at 6 p.m. Pacific Time.