Boeing workers push through 25 percent wage increase

The struggling aircraft manufacturer Boeing promised its largest union a 25 percent pay increase just a few days before an impending strike. The approximately 33,000 employees manufacture, among other things, the best-selling Boeing 737 model. The IAM union had originally demanded a 40 percent increase.

25 percent wage increase at Boeing over four years

The salary increase agreed on Sunday, as well as improvements in health care costs and retirement, are to apply over a period of four years. The union also saw increases of a similar magnitude at the US auto giant General Motors last year. and Ford reached.

Boeing also pledged to build new models in unionized plants. This was a key demand of the union after Boeing set up a non-union plant in South Carolina more than a decade ago to produce the 787 Dreamliner model.

Union members still have to agree to an agreement

The current collective agreement expires on Thursday. Union members will then be called to vote on the deal. They could still decide to go on strike, even if the IAM (International Association of Machinists) recommends accepting the agreement.

Series of breakdowns puts strain on Boeing

Boeing is struggling with problems and losing money after a series of breakdowns. Among other things, the FAA will not allow production of the 737 to be expanded until the company improves quality controls. The trigger for new criticism was an incident in January in which a 737-9 fuselage fragment broke off during a climb. According to the NTSB, the accident investigation authority, fastening elements were missing from the component.

Recently, engine problems with the Starliner caused a stir. NASA forced the craft to leave the International Space Station (ISS) without astronauts. The space company SpaceX, owned by Tesla boss Elon Musk, is to take over the return transport.

Critics of the high wage agreements fear that the agreement could further fuel inflation. Such so-called second-round effects increase the production costs of manufacturers, who then often raise their selling prices.