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Boeing Co. (NYSE:BA) and the International Association of Machinists and Aerospace Workers (IAM) have successfully negotiated a labor agreement, thereby potentially averting a strike.
What Happened: The agreement, announced early Sunday, includes a 25% wage increase over four years, along with enhancements to healthcare costs and retirement benefits.
According to the report by CNBC, the union represents around 33,000 Boeing employees at factories in the Seattle area and Oregon.
Boeing has also pledged to construct its next airplane in the Pacific Northwest, as per the union’s statement. The agreement is yet to receive approval from the workers, with a vote scheduled for September 12.
The existing agreement was due to expire after Thursday, and a strike could have been initiated immediately if no deal was reached. The union had previously been advocating for more than a 40% wage increase.
Also Read: Boeing Shares Dip In Pre-Market As 32K Workers Plan Company’s First Strike In 16 Years
Stephanie Pope, chief executive of Boeing’s commercial airplane unit, stated, “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.”
Why It Matters: This agreement comes as a relief for both Boeing and its employees, as a strike could have led to significant production delays and financial losses.
The deal not only addresses the wage increase demands of the workers but also promises improvements in healthcare and retirement benefits, which are crucial aspects of employee welfare.
Moreover, Boeing’s commitment to build its next airplane in the Pacific Northwest is a strategic move that could boost local economies and reinforce its relationship with the union.
However, the final decision rests with the workers, who are scheduled to vote on the agreement on September 12.
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This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Posted In: BA
