Boeing, largest union reach deal to avoid production strike

Boeing, largest union reach deal to avoid production strike
UPI

Sept. 8 (UPI) — Boeing and the largest union of the troubled aerospace company on Sunday agreed to a new contract that if ratified would avoid a strike scheduled for Friday among production workers.

The International Association of Machinists and Aerospace Workers represents 33,000 workers, who build the commercial jets. The full membership will vote Thursday on the contract.

“You sent us here to stand strong for your priorities, and we are proud to have done so,” the International Association of Machinists and Aerospace Workers said Sunday in a statement on its website.

Boeing said the agreement provides raises totaling 25% over the four-year life of the contract, the largest pay boost for them. There will be a $3,000 lump sum payment within 30 days for everyone.

The new minimum pay grades range from $21 per hour to $37 with an average 31% rate increase over four years. The maximums range from $43.58 to $57.43 with a 12% average increase over four years.

The contract also includes improved contributions to 401(k) plans, reduced employee contributions for health insurance and more time off.

And there is increased job security for union members with a promise to build the next new airplane at one of the union-represented plants in the Puget Sound region. At its nonunion plant in South Carolina, workers build the 787 Dreamliner.

Union workers build planes at three factories in the Seattle area and there is a unionized Boeing’s parts plant in Portland, Ore. Also covered were a small group of employees in California.

“We’ve heard what’s important to you for the new contract, Stephanie Pope, CEO of Boeing’s commercial airplane unit, said in a news release. “And we have reached a tentative agreement with the union on a historic offer that takes care of you and your family.”

A Boeing strike occurred 16 years ago when workers were off the job for eight weeks.

Boeing has reported core operating losses totaling $33.3 billion since the grounding of the 737 Max in 2019. Also, Boeing’s revenue plunged during the COVID-19 pandemic.

In January, a door plug blew off a 737 Max flown by Alaska Airlines 10 minutes into a flight.

The plane had left a factory without the four bolts needed to keep the door plug in place.

Boeing is in danger of having its debt downgraded to junk bond status because of a massive increase in borrowing.

“Financially, the company finds itself in a tough position due to many self-inflicted missteps,” Jon Holden and Brandon Bryant, the presidents of the two union locals at Boeing, said in the message to members. “Finally, in a position of great leverage, we used every ounce of power we could to go after everything you said was important. We did not get everything we wanted, but you all can be proud of your strength, solidarity, and unity because you have achieved the best contract we have ever had.”

They noted: “This contract isn’t just words on paper; it’s a testament to your collective voice. Every demand, every priority that we brought to the table, carried the weight of your strength. The company knew we were only the conduit for your priorities.”

Boeing also has built the Starliner at NASA’s Kennedy Space Center in Florida to transport crews to and from the International Space Station, as well as other low-Earth orbits.

Late Friday, Starliner successfully landed in New Mexico after departing six hours earlier from the space station. The capsule left behind astronauts Butch Wilmore and Suni Williams, who must now remain in the station until February for a return home on a SpaceX capsule. NASA decided problems with Starliner’s thrusters and leaking helium made it too risky of a return with humans.

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