Boeing offers employees a 25% pay hike in an effort to avoid strike

Union leaders representing over 30,000 Boeing employees have recommended accepting the offer, calling it the best contract they've ever negotiated.

Approval of this agreement would mark a significant win for Boeing's new CEO, Kelly Ortberg, who is under pressure to address the company’s quality and reputational issues.

Workers in the Seattle and Portland regions will vote on the proposal on Thursday.

If the deal is rejected, a strike could proceed only if two-thirds of union members approve a subsequent vote.

In a video message, Boeing’s Chief Operating Officer, Stephanie Pope, referred to the proposal as a "historic offer."

If ratified by the International Association of Machinists and Aerospace Workers (IAM) union, this would be the first comprehensive labor agreement between Boeing and the unions in 16 years.

The current contract, established in 2008 after an eight-week strike and extended in 2014, is set to expire later this week.

While the tentative agreement falls short of the union’s initial 40 percent pay hike target, negotiators have praised it, highlighting the improvements it offers.

The deal includes enhanced healthcare and retirement benefits, 12 weeks of paid parental leave, and a commitment from Boeing to consider building its next commercial plane in the Seattle area if the project begins during the contract’s term.

However, the timing of the next jet announcement remains uncertain.

The agreement also gives union members a greater role in safety and quality decisions.

Union negotiators emphasized the role of IAM members in helping Boeing recover from recent challenges, including financial losses and reputational damage due to in-flight incidents and two fatal accidents five years ago.

Aerospace industry veteran and engineer Kelly Ortberg began his role as Boeing’s CEO last month, succeeding during a period of financial strain and ongoing efforts to restore the company's reputation.