Boeing Labor Deal Promises 25% Pay Raise over the Next 4 Years

After a brief but tense standoff between the union and organization, Boeing has struck a tentative 4-year labor deal with its workers, putting off any imminent strikes and protests. The Boeing union strike was only narrowly avoided as it was scheduled to begin on September 12, when the existing contact between the two parties was set to expire.

Now, union members will have to vote on the tentative deal on September 12 to show either support or dissatisfaction with the terms of the agreement. If the majority follow the union’s suggestion to ratify the contract, the deal will resolve all threats of a strike. 

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Boeing Labor Deal Reached—Tentative Agreement Only Steps Away from Being Ratified

The International Association of Machinists and Aerospace Workers (IAM) represents around 33,000 workers and the entire force of them were expected to go on strike. Amidst its other issues, Boeing’s contact with the union was close to expiring on September 12, 2024. This was the airplane maker’s first time returning to the negotiation table in 16 years and the employees had some big expectations from the organization. 

The bargaining team from the union appeared sufficiently satisfied with their Boeing contract deal, calling it the best contract they had ever negotiated. According to Boeing’s labor deal, union employees can expect 25% raises over the next four years, $3,000 USD lump sum payments, and lower healthcare cost shares as well. According to CBS News, the union had initially asked for a 40% pay raise but the current agreement of 25% has been deemed satisfactory.

“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.”

—IAM District 751 President Jon Holden and W24 President Brandon Bryant

The worker’s agreement with Boeing has also granted them one of their more major demands—the production of the aerospace organization’s next plane within the region where these workers can continue to find employment. Across industries, jobs are being relocated in search of cheaper labor, take Volkswagen’s suggestion to close two plants in Germany, for example. Such shifts take away any sense of job security, robbing workers of a reliable, long-term source of employment. When Boeing focuses its attention back on producing its next model, workers will be guaranteed job opportunities for years to come if the work remains in the Seattle area as agreed. 

Has the Boeing Union Strike been Averted?

The Boeing contract deal has dealt a good hand to workers and is very likely to be accepted by the voting members this week. On September 12, a two-part election will be conducted at multiple locations in Washington state and at one location in California. During the vote, members will be able to vote on two topics—acceptance of the contract and whether a strike should be authorized in case the contract is rejected.

If things go well, workers will accept the contract as is, and the Boeing union strike will be avoided entirely. If workers don’t fully accept the contract, they may still vote to go on strike or merely return to the negotiation table for a better deal. If two-thirds support a work stoppage, then a strike can be expected, however, Boeing’s attempts at finding a resolution appear successful for now. 

This will mean one less challenge on Boeing’s plate considering all the issues the company has faced recently and the considerable damage that it has done to its reputation. Quality concerns and security flaws at the company have been well-documented and keeping workers happy and focused on production is in the company’s best interest. 

With newly appointed CEO Kelly Ortberg taking charge of the situation, this could be a turning point for the organization. According to Reuters, signs of the impact of the Boeing labor deal are already turning up with the company shares going up by 3% in U.S. premarket trading on Monday.

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