A tentative labor contract between Boeing and the International Association of Machinists and Aerospace Workers (IAM) has sparked dissatisfaction among many union members who were seeking larger wage increases and better pension benefits.
The IAM, which represents over 32,000 Boeing workers in the US Pacific Northwest, announced the deal with the aerospace company on Sunday. Following the announcement, Boeing’s stock saw a boost on Monday.
However, it remains uncertain whether the IAM members will ratify the agreement or opt for a strike in their upcoming vote on Thursday. Jon Holden, president of IAM District 751 and lead negotiator on the Boeing contract, acknowledged the discontent among the workers.
“They’re angry,” he stated.
Holden explained that while many workers were pushing for higher pay raises and the return of more robust pension plans, the proposed contract represented the best deal the union could secure at this time.
The proposed four-year contract includes a 25% general wage increase and a commitment from Boeing to build its next commercial airplane in the Seattle area, contingent on the launch of the program within the contract period. Despite these provisions, many union members had hoped for a 40% wage increase and the reinstatement of the defined-benefit pension plan that was relinquished in negotiations a decade ago.
Holden acknowledged the frustrations, noting that workers feel the loss of key benefits over the past decade has been difficult to accept.
“It’s hard to come off of 10 years when you lost so many things that were critical,” he said.
If the union rejects the deal and votes to strike, it could pose a significant challenge for Boeing’s new CEO, Kelly Ortberg, who assumed his position last month. Ortberg is tasked with addressing Boeing’s ongoing quality issues and increasing production of the company’s popular 737 MAX passenger jet. Boeing is also dealing with increased scrutiny from regulators and customers, following a recent incident in which a door plug blew off a nearly-new MAX aircraft mid-flight.
With input from Reuters and Mint.
