🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

Boeing firefighters approve new contract deal

Published 05/30/2024, 10:03 PM
Updated 05/30/2024, 10:10 PM
© Reuters. FILE PHOTO: The Boeing logo is seen on the side of a Boeing 737 MAX at the Farnborough International Airshow, in Farnborough, Britain, July 20, 2022.  REUTERS/Peter Cziborra/File Photo
BA
-

By David Shepardson

(Reuters) - Boeing (NYSE:BA) firefighters voted on Thursday to approve a new four-year contract deal that will boost wages for workers and end a weeks-long lockout by the planemaker.

Boeing in early May locked out members of the International Association of Fire Fighters (IAFF) Local I-66 in Washington state after they rejected two contract offers, in a move that drew the concern of President Joe Biden, Washington state Governor Jay Inslee and many members of Congress.

Unionized firefighters voted 86-24 to approve the deal and firefighters will return to work on Saturday.

The four-year deal includes general wage hikes of 2% to 3% annually, with guaranteed overtime increasing annual pay on average by up to $21,216, as well as a $1,000 signing bonus and other compensation improvements, according to a joint fact sheet from the company and the union reviewed by Reuters.

The deal also includes job classification restructuring that allows more opportunities for promotion and will significantly reduce the time needed to get to top pay.

Boeing said on Thursday it is "pleased our firefighters have ratified a new contract and looks forward to them returning to work."

It did not disclose the additional financial burden on the company from the deal and did not respond to a question on that.

The company said in early May it had offered to increase firefighters' average take-home pay to $112,000 in the first year from $91,000.

The International Association of Machinists and Aerospace Workers is separately negotiating a new contract on behalf of more than 30,000 workers who build Boeing's 737 MAX jets.

IAFF I-66 President Casey Yeager said in an interview that those larger talks was a factor in the difficult talks with Boeing. "Did Boeing really want to give into a 125-person local when they have 30,000 people coming up in the fall," he said.

© Reuters. FILE PHOTO: The Boeing logo is seen on the side of a Boeing 737 MAX at the Farnborough International Airshow, in Farnborough, Britain, July 20, 2022.  REUTERS/Peter Cziborra/File Photo

Yeager added the deal brings wages for firefighters "into comparable range" of fire departments in the area.

Boeing 737 MAX production has fallen sharply as the Federal Aviation Administration steps up factory checks following a panel blowout on a new Alaska Airlines 737 MAX 9 in January, blamed on an assembly error. Boeing met with the FAA on Thursday to discuss its 90-day plan to boost quality.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.