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Troubled Boeing seeks to avoid fresh nightmare with 25% raises amid strike threat

Boeing and two unions, representing more than 33,000 workers, reached a tentative deal that would see the biggest ever pay raise for union members if it is approved

Rhian Lubin
Monday 09 September 2024 15:03 BST
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Related video: Boeing executives were grilled by safety investigators over the incident where a door panel blew off mid-flight

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Boeing has offered its machinist union a 25 percent pay raise over four years in a bid to avoid a strike that could shut down production lines later this week.

The tentative deal between Boeing and union leaders representing more than 33,000 workers would amount to the biggest ever pay raise for union members if it is approved on Thursday. Union members have been offered raises of 25 percent over four years, improved contributions to 401(k) plans, more paid leave, and better healthcare.

The company is hoping to avoid a strike that could potentially see tens of thousands of workers walk out if it goes ahead as soon as Friday.

The International Association of Machinists and Aerospace Workers, which represents workers who build the commercial jets, urged its members to accept the deal.

“We can honestly say that this proposal is the best contract we’ve negotiated in our history,” the IAM said in a statement. “We are prepared to fight if needed, but we believe this proposal will benefit all our members and our future.”

The tentative deal would see the biggest ever pay rise for union members if it is approved
The tentative deal would see the biggest ever pay rise for union members if it is approved (REUTERS)

If members vote to accept the deal, it will be the first full labor agreement between Boeing and the unions in 16 years. If the deal is rejected, a second ballot for strike action to go ahead would need be approved by two-thirds of union members.

Boeing’s new chief executive, Kelly Ortberg, is under pressure to repair the company’s reputation and financial losses following a string of high-profile setbacks and disasters.

In mid-January, flight safety came under scrutiny when an Alaska Airlines Boeing 737 MAX 9’s door plug blew off, causing the grounding of all 171 MAX 9 jets by the FAA while they investigated.

Boeing executives admitted they couldn’t say with absolute certainty that another such incident would “not occur tomorrow” as they were forced to give testimony to the US National Transportation Safety Board last month.

In July, a wheel fell off a United Airlines Boeing 757-200 moments after it took off from Los Angeles. And Boeing struck a plea deal with the Justice Department earlier this year to plead guilty to one count of conspiracy to defraud the United States.

The conspiracy charge related to the company allegedly misleading federal regulators into approving the 737 Max jetliner —the aircraft model that was later involved in two fatal crashes in 2018 and 2019, which together claimed the lives of 346 people.

The scandals have taken a toll on Boeing’s profits, with the company recording a staggering $1.4 billion loss in the second quarter of 2024.

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