A tentative labor agreement between Boeing and one of its largest unions has sparked frustration among workers, who were expecting higher wage increases and better pension benefits, according to a union official involved in the negotiations.
The International Association of Machinists and Aerospace Workers (IAM), representing over 32,000 employees in the U.S. Pacific Northwest, announced the agreement with Boeing on Sunday, leading to a rise in the company’s stock on Monday.
However, it remains uncertain whether IAM members will approve the deal or opt for a strike when they vote on Thursday, said Jon Holden, president of IAM District 751 and the lead negotiator for the Boeing contract.
“Workers are upset,” Holden told Reuters, though he emphasized that this was the best deal the union could secure through negotiations. “The decision now lies with our members on the shop floor,” he added, when asked if he believed the deal would pass.
The proposed four-year contract includes a 25% wage increase and a commitment from Boeing to build its next commercial aircraft in the Seattle region, assuming the project is initiated within the contract’s timeframe.
However, many union members had hoped for a 40% wage increase and the reinstatement of a defined-benefit pension plan, which they had reluctantly given up in a prior round of negotiations a decade ago. “It’s difficult to recover from losing such essential benefits over the past 10 years,” Holden commented.
If workers reject the contract and choose to strike, it would pose a significant challenge for Boeing’s new CEO, Kelly Ortberg, who took over last month with the goal of improving safety and increasing production of the company’s popular 737 MAX aircraft.
Boeing is currently grappling with quality issues and facing increased scrutiny from regulators and customers. In January, a door plug detached from an almost-new 737 MAX aircraft operated by Alaska Airlines during flight.A tentative labor agreement between Boeing and one of its largest unions has sparked frustration among workers, who were expecting higher wage increases and better pension benefits, according to a union official involved in the negotiations.
The International Association of Machinists and Aerospace Workers (IAM), representing over 32,000 employees in the U.S. Pacific Northwest, announced the agreement with Boeing on Sunday, leading to a rise in the company’s stock on Monday.
However, it remains uncertain whether IAM members will approve the deal or opt for a strike when they vote on Thursday, said Jon Holden, president of IAM District 751 and the lead negotiator for the Boeing contract.
“Workers are upset,” Holden told Reuters, though he emphasized that this was the best deal the union could secure through negotiations. “The decision now lies with our members on the shop floor,” he added, when asked if he believed the deal would pass.
The proposed four-year contract includes a 25% wage increase and a commitment from Boeing to build its next commercial aircraft in the Seattle region, assuming the project is initiated within the contract’s timeframe.
However, many union members had hoped for a 40% wage increase and the reinstatement of a defined-benefit pension plan, which they had reluctantly given up in a prior round of negotiations a decade ago. “It’s difficult to recover from losing such essential benefits over the past 10 years,” Holden commented.
If workers reject the contract and choose to strike, it would pose a significant challenge for Boeing’s new CEO, Kelly Ortberg, who took over last month with the goal of improving safety and increasing production of the company’s popular 737 MAX aircraft.
Boeing is currently grappling with quality issues and facing increased scrutiny from regulators and customers. In January, a door plug detached from an almost-new 737 MAX aircraft operated by Alaska Airlines during flight.
