Last Updated on 09/09/2024 by Arun jain
Boeing on Sunday agreed to a historic labor deal with its unionized workers, avoiding a potentially catastrophic strike.
The tentative agreement for the next four-year contract, which will still need to be ratified by workers in a vote Thursday, guarantees unionized Boeing workers in the Pacific Northwest a 25% general wage increase over the term of the contract, and a commitment that the company’s next plane will be built in the region.
If approved by the roughly 32,000 Boeing workers, the agreement would prevent a labor stoppage that would be detrimental to the company as it grapples with bad press and weak stock performance.
In January, one of those door plugs Boeing 737 Max 9 The plane came loose mid-flight, causing the window to blow out, compressing the cabin and forcing an emergency landing. Safety inspectors later found numerous Loose bolts in Alaskan Airlines’ fleet of Boeing aircraft.
Then in June of Boeing Starliner spacecraft Thruster problems and helium leaks were experienced during its final flight test Two NASA astronauts got stuck On the International Space Station.
Wait, there’s more: The company agreed in July Plead guilty to fraud-conspiracy charges above Two 737 Max crashes 346 people died in 2018 and 2019. This is enough threatens its government contracts, Which accounts for one-third of the company’s annual revenue.
Last week, the Seattle Times reported that the company still hasn’t reached 2019 employment levels after hemorrhaging more than 21% of its workforce between 2019 and 2020.
The company’s share price has fallen more than 37% this year.
While the new labor agreement represents a significant cost, it avoids the potential incremental effects on Boeing’s stock price that would have come with a work stoppage.
When Business Insider reached out for comment about the contract, a Boeing spokeswoman pointed to a recent statement to employees by Boeing Commercial Airplanes President and CEO Stephanie Pope.
“The contract offer offers the largest general wage increase ever to make healthcare more affordable, a lower medical cost share, more company contributions toward your retirement and improvements for a better work-life balance,” Pope said in the statement. was
Representatives for IAM Districts 751 and W24, union branches representing Boeing workers in the Pacific Northwest, did not immediately respond to a request for comment from BI.
The union, in a statement released Sunday, called the agreement “the best agreement we have negotiated in our history.”
“Financially, the company finds itself in a difficult position due to many self-inflicted mistakes. It is the IAM members who will get this company back on track,” the union statement read. “As has been said many times, there is no Boeing without IAM. Ultimately, we love this company and couldn’t be more proud of the jobs we do or the products we make. It defines what we do. It’s who we are – this craft is our livelihood. When the plane leaves the factory, it’s our reputation on the line that helps keep our legacy alive.”
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