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Boeing Offers 25% Pay Raise to Over 30,000 Employees to Avert Looming Strike

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Boeing and the International Association of Machinists and Aerospace Workers have reached a tentative agreement to avoid a strike that would have affected 33,000 production workers.

The contract will be voted on Thursday and includes a 25 per cent pay raise over four years, which is the largest increase in recent years. According to a statement by  Boeing on Sunday, the workers will also receive a $3,000 lump sum payment within 30 days.

The new pay rates will range from $21 to $37 per hour for entry-level positions, with maximums going up to $57.43. The agreement also lowers health insurance costs and offered better job security. Boeing has promised to build the next commercial airplane at union-represented plants in the Puget Sound area.

Union leaders are calling this the best contract they have ever negotiated, even though it does not meet their original demand for a 40 per cent pay increase. Boeing’s new CEO, Kelly Ortberg, is under pressure to improve the company’s reputation after facing quality issues – one of which is the recent failure of Boeing’s Starliner to return NASA astronauts to earth. The upcoming vote will decide whether the contract is accepted or if a strike will go ahead.

 

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