Boeing Signs New Contract Offer Affecting 33,000+ Employees

With a potential strike of 33,000 employees looming, Boeing has announced that it has reached a tentative agreement with the unions representing these employees, with a historic contract offering. The manufacturer states that the contract is their way of showing commitment to the Pacific Northwest and will ensure better lives for Boeing’s existing employees while also ensuring job security for future generations.

A tentative offer

With the possibility of over 33,000 machinists going on strike next week, the American aircraft manufacturer

Boeing

has announced that it has reached a tentative agreement with the employees’ union today. The agreement includes a historical contract that the manufacturer says will improve employee life, provide the largest-ever wage increase, and improvements to other important elements.

Boeing also stated that this new contract will also be a commitment to the Pacific Northwest region and that the manufacturer’s team in the Puget Sound region will also commence building new aircraft, thus implying job security for future generations.

Photo: cpaulfell | Shutterstock

In a video shared with Boeing employees, Boeing Commercial Airplanes President and CEO Stephanie Pope states:

“We’ve heard what’s important to you for the new contract. And we have reached a tentative agreement with the union on a historic offer that takes care of you and your family. The contract offer provides the largest-ever general wage increase, lower medical cost share to make healthcare more affordable, greater company contributions toward your retirement, and improvements for a better work-life balance.”

After ratifying a new contract in 2008, which was extended in 2011, 2014, and 2016, this is the first full negotiation between Boeing and its employees since. The new tentative offer made is for a contract that runs till 2028.

Further details

The manufacturer, in its tentative deal, states that the employees will be offered the largest-ever general wage increase (GWI) of 25% for all Boeing employees over the term of the contract.

Photo: First Class Photography | Shutterstock

Boeing further states that the average wage growth will be 33% when the general wage increase and progression are taken into consideration. Additionally, there will be further differential increases depending on the number of shifts done by employees.

Apart from improving wages, to make health care more affordable, Boeing will improve its plans to include new free primary care benefits, new company-paid long-term disability plans, and lower the cost share. Furthermore, there will be new Boeing contributions of up to $4,160 per employee per year to the union’s 401(k) in addition to Boeing’s existing 401(k) plan, thereby enhancing the employee retirement plan.

Dependent on ratification

While Boeing’s tentative agreement includes the aforementioned elements and more, the manufacturer has set a clock on this deal. It states that two elements of the contract will only be valid if the contract is ratified by 23:59 on September 12th.

Photo: Thiago B Trevisan | Shutterstock

The two elements of the contract in question are the following:

• A $3,000 lump sum would be paid out within 30 days, which can be deferred to the employees’ 401(k).
• Commitment to building Boeing’s next new airplane in the Puget Sound region.

With the union set to vote on this deal on September 12th, it will be interesting to see what the employees’ overall decision regarding this tentative offer will be. If the deal is not ratified, this could be a major blow for Boeing, significantly affecting its operations and production.