Boeing offers workers 25% raise to avoid strike

Boeing is offering its workers a 25 percent pay raise over four years in a bid to avoid a strike that could potentially shut down assembly lines as early as Friday.

Union leaders representing more than 30,000 workers urged employees to support the proposal, calling it the best deal they have ever negotiated.

If approved, the deal would be a major step for Boeing’s new CEO, Kelly Ortberg, who faces pressure to address the company’s quality and reputational problems.

Boeing workers in the Seattle and Portland areas are scheduled to vote on the deal Thursday. If the deal is rejected, a second round of voting would need to be approved by two-thirds of union members for the strike to go ahead.

In a video message to Boeing employees, the aerospace giant’s chief operating officer, Stephanie Pope, described the proposal as a “historic offer.”

If ratified by members of the International Association of Aerospace and Machinists (IAM) union, it will be the first full labor agreement between the company and unions in 16 years.

The current deal between Boeing and the unions was first reached in 2008 after an eight-week strike. Both sides agreed to extend it in 2014 and is now set to expire at the end of this week.

Although the tentative agreement fell short of the union’s original target of a 40 percent pay increase, negotiators praised it and recommended members accept it.

“We can honestly say that this proposal is the best contract we have ever negotiated in our history,” the IAM statement said.

In addition to the pay increase, the deal also includes improved health and pension benefits, as well as 12 weeks of paid parental leave.

It also includes a commitment from Boeing to build another commercial plane in the Seattle area if the project starts during the contract period. It’s unclear when the company will announce its next jet.

The agreement also gives union members greater influence over safety and quality issues.

“The company is in financial trouble because of a number of self-inflicted mistakes. It is up to the IAM members to get the company back on track,” union negotiators said, referring to the crises Boeing has faced in recent years.

Mr. Ortberg, an aerospace industry veteran and engineer, took over as Boeing’s new chief executive last month.

His appointment came as the company suffered deepening financial losses and was still struggling to rebuild its reputation following recent flight incidents and two fatal crashes five years ago.