Boeing's Tentative Labor Deal with IAM Sparks Worker Discontent

A tentative labor contract between Boeing and the International Association of Machinists and Aerospace Workers has left many workers dissatisfied. They expected higher wage increases and better pensions. The four-year contract proposes a 25% wage hike and commits to building Boeing's next commercial airplane in Seattle. Union members will vote on Thursday to either accept the deal or strike.

A tentative labor contract agreed between Boeing and one of its biggest unions has sparked discontent among workers. The deal, negotiated with the International Association of Machinists and Aerospace Workers (IAM), was announced on Sunday, sending Boeing's shares upward.

IAM President Jon Holden, who led the negotiations, acknowledged the anger among workers who wanted a 40% wage hike and better pension plans. The proposed four-year contract includes a 25% wage increase and a commitment from Boeing to build its next commercial airplane in Seattle, provided the program is launched within the contract period.

The union members will vote on Thursday to either accept the deal or strike. A strike could pose significant challenges for new Boeing CEO Kelly Ortberg, who is working to improve safety and ramp up production amidst ongoing quality and regulatory issues.

(With inputs from agencies.)