Boeing, Union Reach Deal on Biggest Raise Ever

Boeing and a major union reached a tentative agreement on a new contract Sunday that would provide 25% raises over four years and avert a factory strike. The International Association of Machinists and Aerospace Workers represents 33,000 workers who could have struck this week at factories in the Seattle area and in Oregon, CNBC reports. They're scheduled to vote Thursday on the deal, under which Boeing agrees that its next plane will be built in Washington state. "This contract deepens our commitment to the Pacific Northwest," said Boeing executive Stephanie Pope, adding that the agreement on the new plane means "job security for generations to come."

A ratified contract agreement would give new CEO Kelly Ortberg a success after a string of problems at Boeing, per the Washington Post. "The company finds itself in a tough position due to many self-inflicted missteps. It is IAM members who will bring this company back on track," the union said in a statement. The deal, which was negotiated over six months, also reduces workers' health care costs and raises the amount company will contribute to their retirement plans. Boeing said the pay raise is its biggest ever, and the union called the contract the best it's ever negotiated.

Ratification before the current contract expires Thursday will mean a $3,000 bonus for each union member. More time off is included, and Pope said the agreement delivers "improvements for a better work-life balance." Former CEO Dave Calhoun told investors this summer that the goal was to avoid a strike and that he realized, given Boeing's problems, that the union had leverage in the negotiations, per CNN. "We know wage asks will be big," he said. "We're not afraid to treat our employees well in this process." (More Boeing stories.)