(New York) Boeing management and union officials have agreed to a major wage increase that would avert a strike in the Seattle area, the two sides announced Sunday.
The agreement, which still needs to be ratified by workers, provides for a 25% wage increase over the life of the new collective agreement, according to Boeing and the International Association of Machinists and Aerospace Workers (IAM) District 751 union, which represents more than 30,000 of the American planemaker’s employees in the region.
Other key provisions in the deal include lower health care costs for workers, reduced mandatory overtime, 12 weeks of paid parental leave and a commitment to build Boeing’s next plane in the Puget Sound region if the contract is ratified this week, according to a Boeing document.
The preliminary agreement comes just weeks after the arrival of new CEO Kelly Ortberg, who has been tasked with turning around the iconic aircraft manufacturer whose reputation has been tarnished, particularly by air safety issues.
While Mr. Ortberg had promised to “reset” relations with the union, IAM-District 751 judged on Friday that the two parties were “very far apart.”
In a message to members, union president Jon Holden said the union’s “strength, solidarity and unity” had secured “the best contract we’ve ever had.”
Mr Holden urged his members to consider the proposal carefully.
“We are prepared to fight if necessary, but we believe this proposal will benefit all of our members and our future,” he said in a message. “This vote is now in your hands, as it should be,” he added.