Boeing says it negotiated a labor agreement in good faith with the union by Reuters

(Reuters) – Boeing (NYSE: ) has negotiated in good faith with one of its largest unions over a new labor contract and “has not held back on a second vote,” its chief operating officer said on Tuesday in a letter to employees seen by Reuters.

A tentative deal with the International Association of Machinists and Aerospace Workers (IAM) has upset many workers who were hoping for bigger pay rises and better pensions, its chief negotiator Jon Holden told Reuters on Monday.

In the letter, COO Stephanie Pope reiterated “unprecedented commitment” to the terms of the proposed deal, which include a 25 percent across-the-board salary increase and a commitment to build its next commercial jet in the Seattle area.

Holden said many members wanted to hold out for a 40 percent pay increase over the contract period and a reinstatement of the defined benefit pension plan they reluctantly gave up during a round of negotiations a decade ago .

If union workers vote against the deal and decide to strike, it would be a blow to new Boeing CEO Kelly Ortberg, who took over the role last month with a mandate to improve safety and speed up production of the company’s best-selling 737 MAX the company. passenger jet.