Boeing threatens strike as workers vote on new collective agreement

Boeing Workers will vote on a new labor contract on Thursday, raising the possibility of a crippling strike if the workforce votes against the deal at a time when the aircraft manufacturer is trying to ramp up production.

The tentative agreement, which the International Association of Machinists and Aerospace Workers and the company unveiled on Sunday, included 25% wage increases and other improvements in health and retirement benefits. Boeing also committed to building its next plane in the Seattle area.

The vote is the first major test for CEO Kelly Ortberg, who said in a memo to employees on Wednesday that he had spoken to employees in Renton, Washington, and Everett, Washington, where Boeing's main factories are located, about the contract.

Ortberg has been the manufacturer's new top manager for just over a month. He was given the task of stabilizing production and eliminating safety gaps and quality defects after a tire burst in a door panel earlier this year.

“I know the response to our tentative agreement with the IAM has been passionate,” he wrote in his staff memo. “I understand and respect that passion, but I ask that you do not give up the opportunity to secure our shared future because of the frustrations of the past.”

The union, which represents about 33,000 Boeing factory workers in the Seattle area and Oregon, had demanded a wage increase of about 40 percent from Boeing. However, the 25 percent increase would be consistent with the United Auto Workers' agreement reached last year after strikes at fordGeneral Motors and Chrysler parent Stellantis.

If approved, the Boeing deal would follow a series of union-negotiated wage increases across numerous industries, from Hollywood to airlines.

“We have achieved everything we could in negotiations, short of a strike,” Jon Holden, district president of IAM District 751, wrote to members on Monday. “We recommend acceptance, as we cannot guarantee we can achieve more in a strike. But that is your decision and a decision we will protect and support no matter what.”

Once the new contract takes effect, top pay for IAM workers at Boeing would rise to $57.43 an hour. Including some cost-of-living adjustments, the raises could increase by more than 42 percent, according to the union. Boeing said the average annual wage for a machinist is currently $75,608 and would rise to $106,350 at the end of the four-year contract.

If the deal is rejected and two-thirds of workers vote to strike, a walkout would begin after midnight Friday in Washington. If fewer than two-thirds of workers vote to strike after the contract is rejected, the contract would automatically go into effect, the union said.

“Boeing is no secret that our business is going through a difficult period, due in part to our own past mistakes,” Ortberg said in his statement. “I know that by working together we can get back on our feet, but a strike would jeopardize our collective recovery, further undermine our customers' confidence and impair our ability to shape our future together.”

Polls are expected to close at 6:00 p.m. PT.