New contract vote threatens Boeing with a possible strike.

• Earlier this week, a tentative agreement was unveiled by Boeing and the union representing approximately 33,000 workers.
• The deal would include 25% raises over four years.
• The current contract expires after midnight in Washington on Thursday.

On Thursday, workers will vote on a new labor contract, which could lead to a strike if they reject the deal, potentially crippling the plane-maker's production efforts.

On Sunday, the International Association of Machinists and Aerospace Workers and the company reached a tentative agreement that included 25% wage increases, enhancements to health-care and retirement benefits, and a commitment from Boeing to construct its next aircraft in the Seattle area.

The contract in Renton and Everett, where Boeing's main factories are located, is the first major test for CEO Kelly Ortberg, as he discussed it with employees in a staff note on Wednesday.

Ortberg has been in his new position for just over a month and is responsible for improving production, ensuring safety, and correcting quality issues following a door-panel blowout at the beginning of the year.

"The response to our proposed agreement with the IAM has been intense," he stated in his memo. "While I acknowledge and appreciate the intensity, I urge you not to forsake the chance to safeguard our future jointly due to the lingering resentments of the past."

The union representing approximately 33,000 Boeing factory workers in the Seattle area and Oregon had requested a 40% pay raise from Boeing. However, the proposed 25% increase aligns with the United Auto Workers' deal last year, which was reached after strikes at General Motors and Chrysler-parent Stellantis.

If the Boeing deal is approved, it will result in a series of union-negotiated pay increases across various industries, including Hollywood and airlines.

"On Monday, IAM District 751 district president Jon Holden informed members that they had accomplished everything possible in negotiations, except for a strike. He advised acceptance because they could not guarantee any further gains in a strike. However, the decision to strike was ultimately up to the members, and the union would support it regardless."

Boeing's IAM workers will receive a pay increase of over 42% as soon as the new contract is implemented, bringing their hourly wage to $57.43. The union has announced this increase, which will also include cost-of-living adjustments. According to Boeing, the average annual machinist pay is currently $75,608, which will rise to $106,350 at the end of the four-year contract.

If the contract is rejected and two-thirds of workers vote in favor of a strike, a work stoppage would begin after midnight in Washington on Friday. If less than two-thirds vote to strike after the contract is rejected, the contract would automatically go into effect, the union said.

"Boeing's business is in a challenging phase, partly because of our past mistakes, as Ortberg acknowledged in his note. However, he believes that by working together, they can overcome this obstacle. Nevertheless, a strike could jeopardize their shared recovery and harm their ability to determine their future together, further damaging trust with their customers."

Polls are set to close at 6 p.m. PT.