Boeing has confirmed that its upcoming aircraft, speculated to be the 797 model, could be manufactured in northwest Washington. The aerospace giant has announced a “historic contract offer” to labor unions, with representatives scheduled to vote on the proposal in the coming days.
Stephanie Pope, Boeing’s Chief Commercial Officer, emphasized the significance of the contract, stating, “Boeing’s roots are here in Washington – it’s where generations of workers have built incredible airplanes.” She added that the new agreement would allow the Puget Sound team to “build Boeing’s next airplane,” promising “job security for generations to come.”
The anticipated 797, or new midsize aircraft (NMA), is expected to replace the aging 757 and 767 models, offering seating for 200 to 295 passengers. The twin-aisle design aims to address the growing demand for middle-of-the-market aircraft and will compete with the Airbus A320 and A330 families.
The proposed contract includes a 25% wage increase for all employees over its duration, with an 11% increase effective immediately. This is the largest general wage increase in Boeing’s history.
The International Association of Machinists and Aerospace Workers (IAM) District 751, which represents Boeing employees, noted the significance of the negotiation. “After 16 years, we finally got back to the bargaining table,” the union stated. With the current contract set to expire soon, a vote on the new proposal is scheduled for September 12, with the Union Bargain Committee recommending acceptance.
Upon ratification, union members will receive a one-time lump sum payment of $3,000, contingent on timely approval of the contract. Other benefits include lower medical cost shares, reduced mandatory overtime, additional paid parental leave, and increased company contributions to retirement plans.
Washington, home to over 66,000 Boeing employees, represents the largest portion of the company’s global workforce. The state is also the sole production site for several Boeing aircraft, including the 737 MAX, 767, 777X, P-9, and KC-46A.
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