Why some Boeing employees aren't happy with a proposed 25% pay increase over 4 years

• Boeing's new tentative labor contract offers a 25% increase to Seattle employees over four years.
• Some union members are unsatisfied with the new contract, which falls short of their ask: a 40% pay rise.
• Employees also want to reinstate a pension plan, which was discontinued a decade ago.

Boeing's new tentative labor contract, which includes a pay increase over four years, has been touted as another win for the beleaguered company.

But some workers are still unsatisfied, Jon Holden, president of the IAM's district 751 and lead negotiator on the Boeing contract, told Reuters on Monday.

The company's tentative contract, proposed on Sunday, would increase its workers' general wages by 25% over the length of the four-year contract. Boeing would also build its next commercial plane in the Seattle area, as long as the program is initiated within four years of the contract.

The deal has sparked dissatisfaction among some members of the International Association of Machinists and Aerospace Workers, which represents over 32,000 workers in the Pacific Northwest. Per Reuters, the offer falls short of their expectations.

"They're angry," Holden told Reuters. "It's hard to come off of 10 years when you lost so many things that were critical."

Some union members had been pushing for a much higher wage hike— up to 40% — Holden said.

Another sticking point is the defined-benefit pension plan, which the union reluctantly conceded in an agreement a decade ago. That deal also limited pay raises to less than 1% on average.

Many workers had hoped the new deal would reinstate the pension plan, Holden told Reuters.

Boeing has been steadily moving away from its roots in the Pacific Northwest. Over the past two decades, the company relocated its headquarters first to Chicago and later to Arlington, Virginia. Meanwhile, production of some of its key aircraft, like the 787 Dreamliner, was moved to South Carolina.

The company announced its plans to be based in Seattle after Kelly Ortberg took over as CEO on August 8.

The contract is set to be voted on Thursday by union members.

Boeing and the IAM did not immediately respond to a request for comment from Business Insider, sent outside business hours.