A tentative labor agreement between Boeing Co. and the International Association of Machinists and Aerospace Workers (IAM), representing over 32,000 employees in the Pacific Northwest, has sparked dissatisfaction among workers. The deal, announced on Sunday, includes a 25% general wage increase and a commitment from Boeing to build its next commercial airplane in Seattle, provided the program launches within the contract period. However, many workers are expressing disappointment, hoping for higher wage increases and the reinstatement of the defined-benefit pension plan lost a decade ago.
Jon Holden, president of IAM’s district 751 and lead negotiator, acknowledged the workers’ discontent, stating, “They’re angry.” He believes this agreement represents the best outcome achievable through negotiations. The union members will vote on the deal on Thursday, with the possibility of a strike looming if it’s rejected.
The tentative agreement comes at a critical time for Boeing, which has been grappling with various challenges. The company is facing financial hurdles, leading Wells Fargo to downgrade Boeing’s stock to Underweight, suggesting a potential delay in its annual free cash flow target to 2027-28. Safety concerns have also been a significant issue for Boeing, with a recent survey revealing increased traveler apprehension regarding aircraft safety.
The potential strike, if it materializes, could further disrupt Boeing’s operations. The announcement of the preliminary agreement boosted Boeing’s shares on Monday, but the uncertainty surrounding the workers’ vote adds a layer of complexity for the company. The strike could pose a challenge for new CEO Kelly Ortberg, who recently assumed leadership with a mandate to improve safety and production of the 737 MAX.
Despite the dissatisfaction among workers, the tentative agreement represents a potential step forward for Boeing. The company hopes to avoid a strike that could further exacerbate its existing challenges. The outcome of the vote on Thursday will have a significant impact on the future of Boeing and its workforce.
