Boeing staff get 25% pay hike in deal to avoid strike

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

If ratified by union members, it would be the first full labour agreement between the firm and the unions in 16 years.

Aside from the pay bump, the deal also offers workers improved retirement benefits and a commitment by Boeing to build its next commercial airplane in the Seattle area.

“We can honestly say that this proposal is the best contract we’ve negotiated in our history,” said a statement from the International Association of Machinists and Aerospace Workers (IAM).

“Financially, the company finds itself in a tough position due to many self-inflicted missteps. It is IAM members who will bring this company back on track,” the negotiators said, referring to the safety and quality crises faced by Boeing 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 firm reported deepening financial losses and continued to struggle to repair its reputation following recent in-flight incidents and two fatal accidents five years ago.