A tentative labor contract between Boeing and the International Association of Machinists and Aerospace Workers (IAM) is facing significant backlash from union members, who are expressing dissatisfaction with the proposed terms. The IAM, which represents over 32,000 workers in the U.S. Pacific Northwest, reached the agreement with Boeing on Sunday, but many workers are reportedly unhappy with the offer, particularly concerning wage increases and pension benefits.
Jon Holden, president of IAM District 751 and the chief negotiator for the Boeing contract, acknowledged the discontent among the members. “They’re angry,” Holden told Reuters, reflecting the frustration of workers who were hoping for more substantial improvements. The proposed four-year deal includes a 25% general wage increase and a commitment from Boeing to build its next commercial airplane in the Seattle area, provided the new plane program is initiated within the contract’s duration.
However, many IAM members are seeking a 40% wage increase over the contract period and the reinstatement of the defined-benefit pension plan they gave up during negotiations a decade ago. Holden expressed the challenges of recovering benefits lost over the past decade, saying, “It’s hard to come off of 10 years when you lost so many things that were critical.”
The contract’s fate will be decided by a vote scheduled for Thursday. If the proposal is rejected and the workers opt to strike, it would present a significant challenge for Boeing’s new CEO, Kelly Ortberg. Ortberg, who assumed his role last month, has been tasked with addressing safety issues and boosting production of Boeing’s popular 737 MAX passenger jet. The company is currently dealing with a quality crisis and facing scrutiny following an incident in January where a door plug on a nearly new MAX aircraft blew off mid-flight.
The outcome of the vote will not only impact the future of Boeing’s labor relations but also could have broader implications for the company’s production and safety record during a critical period.
