The approximately 33,000 employees build, among other things, the best-selling Boeing 737 model. The IAM union had originally demanded a 40 percent increase.
The salary increase agreed on Sunday, as well as improvements in health care costs and retirement, are to apply over a period of four years. The union also achieved increases of a similar magnitude at the US auto giants last year.
Boeing also pledged to build new models in unionized plants. This was a key demand of the union after Boeing set up a non-union plant in South Carolina more than a decade ago to produce the 787 Dreamliner model.
The current collective agreement expires on Thursday. Union members will then be called to vote on the deal. They could still decide to go on strike, even if the IAM (International Association of Machinists) recommends accepting the agreement.
Boeing is struggling with problems and losing money after a series of breakdowns. Among other things, the Federal Aviation Administration (FAA) is not allowing production of the 737 to be expanded until the company improves quality controls. The trigger for new criticism was an incident in January in which a fuselage fragment of a 737-9 broke off during a climb. According to the NTSB, the accident investigation authority, fastening elements were missing from the component.
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IAM 751 contract pdf Boeing
Boeing Reaches Tentative Deal with IAM Union, Averting Potential Strike
In a significant development for the aerospace industry, Boeing has reached a tentative agreement with the International Association of Machinists (IAM) union, representing approximately 33,000 production workers. The deal comes after months of negotiations and addresses key demands from the union, including salary increases, improvements in healthcare costs and retirement benefits, and commitments to build new models in unionized plants [[3]].
The IAM union had originally demanded a 40% increase in salary, which was subsequently negotiated down to a four-year agreement that will see improvements in compensation and benefits for its members. This is similar to the increases achieved by the union at US auto giants last year [[1]].
A key aspect of the agreement is Boeing’s commitment to building new models in unionized plants, a demand that arose after the company set up a non-union plant in South Carolina over a decade ago to produce the 787 Dreamliner model [[2]]. This move is seen as a significant victory for the union, which has been seeking to protect the interests of its members.
The current collective agreement between Boeing and the IAM union is set to expire on Thursday, and union members will now vote on the proposed deal. While the IAM has recommended accepting the agreement, union members can still decide to go on strike if they are not satisfied with the terms of the deal [[1]].
The agreement comes at a critical time for Boeing, which has been struggling with problems and losing money due to a series of breakdowns. The company is facing scrutiny from the Federal Aviation Administration (FAA) over its quality control processes, particularly in relation to the 737 model. An incident in January, where a fuselage fragment of a 737-9 broke off during a climb, has raised concerns about the safety of the aircraft [[1]].
The IAM/Boeing Joint Programs, a partnership aimed at improving health, safety, and education in the workplace, will likely play a crucial role in addressing these concerns and ensuring that Boeing’s production processes meet the required standards [[2]].
the tentative agreement between Boeing and the IAM union is a significant development for the aerospace industry, and a welcome relief for both parties. While the deal still needs to be ratified by union members, it represents a major step forward in addressing the concerns of production workers and ensuring the long-term sustainability of Boeing’s operations.
References:
[1] Boeing reaches tentative deal with its production workers…
[2] IAM/Boeing::Joint Programs
[3] Good News For Aerospace Industry: Boeing and IAM…
IAM 751 contract pdf Boeing
Boeing Reaches Tentative Agreement with Machinists Union, Avoiding Strike
In a major development, Boeing has reached a tentative agreement with the International Association of Machinists (IAM) union, averting a potential strike that could have had significant consequences for the company. The agreement was reached just days before the machinists’ contract was set to expire on Thursday [1[1].
The tentative agreement, which still needs to be ratified by union members, offers a 25% general wage increase over the life of the contract, as well as enhanced retirement benefits and fewer hours of mandatory overtime work [2[2]. The union had originally demanded a 40% increase, but the agreed-upon increase is still significant, especially considering the recent struggles faced by the company.
Boeing has also pledged to build new models in unionized plants, a key demand of the union. This is significant, as the company had set up a non-union plant in South Carolina more than a decade ago to produce the 787 Dreamliner model [3[3].
The agreement is a welcome development for Boeing, which has been struggling with problems and losing money after a series of breakdowns. The company is still recovering from the impact of the COVID-19 pandemic and has faced criticism from the Federal Aviation Administration (FAA) over quality control issues. In January, a fuselage fragment of a 737-9 broke off during a climb, leading to a grounding of the aircraft and further scrutiny from the FAA.
The IAM union represents approximately 33,000 employees who build, among other things, the best-selling Boeing 737 model. The agreement, if ratified, will apply over a period of four years and covers improvements in health care costs and retirement, in addition to the wage increase.
While the agreement is a positive step forward, it’s worth noting that union members could still decide to go on strike, even if the IAM recommends accepting the agreement. The current collective agreement expires on Thursday, and union members will be called to vote on the deal in the coming days.
the tentative agreement between Boeing and the IAM union is a significant development that could help the company avoid a costly strike and get back on track. However, the road ahead is still uncertain, and much will depend on the ratification process and the company’s ability to address the ongoing quality control issues.
