Boeing awaits union vote on wage deal that could end costly strike

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Boeing awaits union vote on wage deal that could end costly strike
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Some analysts have questioned whether the proposed deal will muster enough support to pass

Boeing factory workers are voting on Wednesday on a new contract proposal that could end a more than five-week strike, in a crucial moment for the troubled planemaker as it wrestles with a deepening financial crisis. Photograph: Manuel Valdes/APBoeing factory workers are voting on Wednesday on a new contract proposal that could end a more than five-week strike, in a crucial moment for the troubled plane maker as it wrestles with a deepening financial crisis.

Since then, Boeing and the leadership of the International Association of Machinists and Aerospace Workers union have been locked in often acrimonious negotiations, with both sides accusing the other of torpedoing talks.Workers lined up to cast ballots near the 737 MAX production facility in Renton, Washington before the vote started at 8am..

The latest offer includes a 35 per cent pay hike over four years, a $7,000 ratification bonus, a reinstated incentive plan and enhanced contributions to workers’ 401 retirement plans. The wage increase and ratification bonus are higher than in a previous offer that was rejected by 95 per cent of workers in a vote last month. But the salary hikes fall short of a 40 per cent pay rise over four years and the restoration of the defined-benefit pension lost in 2014 demanded by the union.

Many workers are still angry about the last set of negotiations in 2014 when Boeing used the threat of moving production of the new version of the 777 out of the region to push through a deal that ended traditional pensions.

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