Boeing is offering its employees a 25% pay increase over a four-year contract in an effort to avoid a strike that could halt its assembly lines as early as Friday.
Union leaders, representing more than 30,000 workers, have urged members to back the proposal, calling it the best contract they have ever negotiated.
If approved, the deal would be a significant win for Boeing’s new CEO, Kelly Ortberg, who is under pressure to address the company’s quality and reputation concerns.
Boeing workers in the Seattle and Portland areas are scheduled to vote on the agreement on Thursday. A strike could still occur if two-thirds of union members support it in a separate vote.
In a video message to employees, Boeing’s Chief Operating Officer, Stephanie Pope, referred to the proposal as a “historic offer.”
If ratified, it would mark the first comprehensive labor agreement between Boeing and the unions in 16 years.
The current contract, initially agreed upon in 2008 following an eight-week strike, was extended in 2014 and is set to expire later this week.
Although the preliminary deal falls short of the union’s original goal of a 40% pay raise, negotiators have praised the agreement and encouraged members to accept it.
“We can honestly say that this proposal is the best contract we’ve negotiated in our history,” said a statement from the International Association of Machinists and Aerospace Workers (IAM).
Aside from the pay bump, the deal offers workers improved healthcare and retirement benefits and a commitment by Boeing to build its next commercial airplane in the Seattle area.
It also gives the union members more say on safety and quality isues.
“Financially, the company finds itself in a tough position due to many self-inflicted missteps. It is IAM members who will bring this company back on track,” the union negotiators said, referring to the crises faced by Boeing in recent years.
Mr. Kelly Ortberg, an aerospace industry veteran and engineer, assumed the role of Boeing’s chief executive last month.
His appointment follows a period of significant financial losses for the company, which continues to grapple with reputational damage stemming from recent in-flight incidents and two fatal accidents that occurred five years ago.