Boeing Employees Vote on Revised Contract as Strike Looms Over Aircraft Certifications

Boeing employees are set to vote on a revised contract offer on October 1. If they reject it for a second time, about 17,000 members of the aerospace engineering union could begin a strike as early as October 7.

The current contracts expire the day after the potential strike starts. A work stoppage would disrupt certification of the 737 MAX 10 and 777-9 aircraft, slowing their deliveries and impacting Boeing's financial recovery.

Boeing CEO Kelly Ortberg said at a September financial conference that the company is working hard to avoid a work stoppage, which he believes would cause financial losses. The revised offer provides for a guaranteed 10% pay increase upon contract ratification, plus a guaranteed annual increase of 4%, with an additional up to 2% possible based on performance.

Union negotiators sought larger increases, saying employees' pay has fallen behind market rates and inflation. Some union members who voted against the first offer now support the new one, citing improved compensation and the ability to return to other demands in future negotiations.