Boeing Offers 25% Pay Increase to Avert Strike as Crucial Vote Looms

Boeing is offering its employees a significant 25% pay raise over four years in an effort to avoid a potential strike that could halt its production lines as early as Friday. The offer has been hailed as a “historic” deal by company executives and union leaders alike, with union representatives urging more than 30,000 workers in the Seattle and Portland areas to approve the agreement in a crucial vote set for Thursday.

The proposed deal, negotiated by the International Association of Machinists and Aerospace Workers (IAM) union, includes not only the pay increase but also enhanced healthcare and retirement benefits, 12 weeks of paid parental leave, and a commitment from Boeing to build its next commercial airplane in the Seattle area if the project is initiated during the contract’s duration. Additionally, the deal gives union members greater input on safety and quality issues, a key concern amid Boeing’s recent challenges.

If ratified, this would mark the first full labor agreement between Boeing and the unions in 16 years, potentially bringing stability after years of strained relations. The current contract, originally negotiated in 2008 after an eight-week strike and extended in 2014, is set to expire this week.

While the offer falls short of the union’s initial demand for a 40% pay increase, IAM leaders have praised the deal as the best they’ve ever negotiated and strongly recommend its acceptance. However, should the proposal be rejected, a second vote would need to secure a two-thirds majority for a strike to proceed, putting Boeing’s new CEO, Kelly Ortberg, in a high-stakes situation as he seeks to navigate the company through ongoing quality and reputational challenges.