Boeing (BA.US) reaches preliminary agreement with union: 25% pay raise over four years

Boeing (BA.US) has reached a preliminary agreement with the International Association of Machinists and Aerospace Workers, which represents 33,000 workers in the US west coast. The deal includes a 25% pay raise over four years, improved healthcare costs and retirement benefits, and a commitment to build planes in the unionized Pacific northwest. The agreement still needs to be approved by workers. IAM has recommended that its members vote in favor of the deal. But if members reject the deal, and two-thirds of members vote to strike, the strike will begin at midnight on Friday. IAM has been pushing for a pay raise of more than 40%. Jon Holden, president of IAM's local union, said: "While we were not successful on every single article, we can honestly say this is the best contract we've ever negotiated." "Fiscally, the company found itself in a tough spot due to many self-inflicted wounds." A strike victory for Boeing would be a win. The company is already trying to overcome cash flow and production hurdles as it struggles with quality issues. Boeing said the average wage under the new agreement would grow by 33% over four years, because of the added years of service. Stephanie Pope, Boeing's business leader, said: "Our team in the Puget Sound will build the next new plane for Boeing. That means job security for generations to come."