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Boeing reaches tentative deal with union to avoid production strike

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Boeing reaches tentative deal with union to avoid production strike

Boeing reaches tentative deal with union to avoid production strike
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Boeing and its largest union said Sunday they reached a tentative agreement on a new contract; if ratified, it will avoid a strike scheduled for Friday among production workers which threatened to shut down the aerospace company.

The International Association of Machinists and Aerospace Workers represents 33,000 workers, who build the commercial jets. Jon Holden, president of IAM District 751, the machinists’ union outpost at Boeing, shared in a statement on its website: “You sent us here to stand strong for your priorities, and we are proud to have done so .. 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.” 

Boeing said 33,000 workers represented by the International Association of Machinists and Aerospace Workers, who build the commercial jets, would get pay raises of 25% over the four-year life of the contract, with average wages rising 33% due to seniority step increases.  There will be a $3,000 lump sum payment within 30 days for everyone, with 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.

Stephanie Pope, the president of Boeing’s commercial airplanes division, said Sunday in a video for employees that the proposed contract includes the company’s largest-ever general wage increase, and added that the promise to build Boeing’s next new airliner in the Puget Sound, Washington area means job security for generations to come. Said Pope: “We’ve heard what’s important to you for the new contract, Stephanie Pope, CEO of Boeing’s commercial airplane unit. And we have reached a tentative agreement with the union on a historic offer that takes care of you and your family.”

The proposed contract is contingent on union members ratifying it by late Thursday night Pacific time. The union has scheduled a two-part election for Thursday, with workers voting whether to accept the contract, and whether to authorize a strike if they reject the offer. Voting will occur at about a half-dozen locations in Washington state and one in California.

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