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Boeing reaches a labour agreement to prevent strikes

Boeing and the IAM 751 union claimed on Sunday to have reached a tentative agreement that could help avert a possible strike as early as 13 September.

The union and the company said the offer includes a 25 per cent wage increase over four years, 12 weeks of paid parental leave and improved job security and a commitment to build Boeing’s next aircraft in the Seattle area. The union also got a seat at the bargaining table on safety and quality in the production system.

The agreement came after a marathon of negotiations with a strike looming after the current contract expired at midnight on 12 September. It is particularly significant for new Boeing Chief Executive Officer Kelly Ortberg, who has made it clear he seeks to reset long-disputed labour relations at the aircraft maker.

The potential passing of the deal would provide labour peace of mind for Boeing as the aircraft maker has been running out of money and struggling to ramp up production of its best-selling 737 MAX model to a target of 38 planes a month by the end of the year.

Still, the issue remains unresolved as it is still unclear whether workers at the Boeing plant would back the measure or oppose the management. The anti-management tensions are heating up, especially among workers who forced to give up their pensions a decade ago.

If workers reject the company’s offer, Boeing faces a strike that might lead to the closure of its plants in Puget Sound, threatening efforts to increase production of jetliners after a near-crash that exposed poor quality control and manufacturing deficiencies.

The proposed four-year agreement is expected to pass on Thursday by workers at the Boeing plant near Seattle and Portland, represented by the International Association of Machinists and Aerospace Workers (IAM).

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