Boeing reached a tentative deal on Sunday for a new contract with unions representing more than 33,000 workers, a significant step toward avoiding a strike that threatened to shut down production when the existing agreement expires later this week.
The proposal, which has yet to be voted on by the workers, would be the first full agreement between the company and the unions in 16 years and would deliver raises of 25 percent over the four-year life of the contract. That falls short of the 40 percent the unions had sought, but includes other victories, including improvements to health care and retirement benefits, and a promise to build the company’s next commercial airplane in the Seattle and Portland regions.
If approved, the deal would resolve one of the most pressing items on the agenda of Boeing’s new chief executive, Kelly Ortberg, who started a month ago. Mr. Ortberg, the former head of aerospace supplier Rockwell Collins, inherited a company in crisis after a panel blew off a 737 Max jet in January. Though no one was seriously injured, that episode reignited concerns from five years ago about the quality and safety of Boeing planes after two fatal crashes involving Max planes. It also shed light on Boeing’s shortcomings on quality control.
The leadership of the unions — District 751 and the much smaller District W24 of the International Association of Machinists and Aerospace Workers — urged their members to approve the deal.
“Negotiations are a give and take, and although there was no way to achieve success on every single item, we can honestly say that this proposal is the best contract we’ve negotiated in our history,” Jon Holden, president of District 751, and Brandon Bryant, president of District W24, said in the joint message.
The unions mainly represent production workers who build commercial and military airplanes. District 751 is by far Boeing’s largest union, representing the vast majority of the workers governed by the proposed and existing contracts. Many of the workers live in the Seattle area, which is home to most of Boeing’s commercial airplane production.
The company also opened a factory more than a decade ago in South Carolina, where nonunion workers perform final assembly of its twin-aisle 787 Dreamliner plane.
Members of the unions will vote on the deal on Thursday, ahead of the midnight expiration of the current contract. The vote will include two parts: one on accepting the offer and another asking to reaffirm a nearly unanimous, but symbolic strike vote over the summer.
A strike is still possible as soon as Friday, but would require both a majority rejecting the deal and at least two-thirds reaffirming the earlier strike vote. The new contract would still take effect even if most members rejected the deal, but less than two-thirds approved a strike.
If the offer is ratified, each union member would receive $3,000 on ratification, the company said in a statement. Boeing would also increase annual payments into the union’s 401(k) plan by up to $4,160 per worker, cover more of the cost of health care and commit to improvements in work-life balance, such as reduced mandatory overtime.
In a video message to employees, Stephanie Pope, the chief executive of Boeing’s commercial airplane unit, described the deal as a “historic offer.” She also praised the agreement to build the company’s next commercial plane in the Pacific Northwest.
“Boeing’s roots are here in Washington. It is where generations of workers have built incredible airplanes that connect the world,” she said. “And it’s why we’re excited that, as part of the contract, our team in the Puget Sound region will build Boeing’s next new airplane. This would go along with our other flagship models, meaning job security for generations to come.”
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