Boeing, Union Agree on New Contract
Boeing, Union Agree on New Contract
The Facts
Boeing and its largest union, the International Association of Machinists and Aerospace Workers (IAMAW), Sunday announced they've agreed on a new contract — averting a strike assuming it's ratified.Boeing and its largest union, the International Association of Machinists and Aerospace Workers, Sunday announced they've agreed on a new contract — averting a strike if it's ratified.
The new agreement calls for the 33K union workers to get pay raises of 25% over four years. Average wages will rise 33% because of seniority step increases, but the union had been seeking a 40% rise.
The Spin
This deal shows that Ortberg getsis itwell-positioned for this role. Bathed in a sea of bad publicity and sinking value, Ortberg didn't just cut a deal that shows the company values its employees and meets the union halfway — and gives union leaders a contract to crowbe aboutproud of — but also commits to building in the Pacific Northwest, where there's the best chance for Boeing to complete its projects correctly. Boeing is on the path to recovery.
The union had all the leverage here, considering the dire straits Boeing has found itself in. However, the union negotiated a fair deal and made some concessions. So the onus is now on the company to fulfill its promises and commit to the safety improvements it has been talking about since Ortberg ascended to CEO.the Talkchief isexecutive cheap,role. and Boeing's future actions, not rhetoric, will determine whether the company survives.
