Boeing is offering its employees a significant pay increase in an effort to prevent a potential strike that could disrupt the company’s operations. The proposed contract includes a 25% salary bump spread over four years, aiming to address worker concerns and avoid industrial action that could halt assembly lines as early as this Friday.

Union leaders, representing over 30,000 Boeing employees, have endorsed the proposal, describing it as the most favorable contract they have negotiated to date. The agreement is seen as a crucial milestone for Boeing’s new CEO, Kelly Ortberg, who has been tasked with addressing the company’s ongoing quality and reputational issues.

The workers in the Seattle and Portland regions are scheduled to vote on the proposed deal on Thursday. However, the prospect of a strike remains if two-thirds of union members approve the proposal in a subsequent vote.

In a message to employees, Boeing’s Chief Operating Officer, Stephanie Pope, emphasized that the offer represents a historic milestone for the company. If ratified, this would mark the first comprehensive labor agreement between Boeing and the unions in 16 years.

While the contract does not meet the union’s initial demand for a 40% pay increase, it still includes enhanced healthcare and retirement benefits. Additionally, Boeing has committed to constructing its next commercial airplane in the Seattle area and providing union members with greater input on safety and quality issues.

The proposed contract comes at a critical time for Boeing, which has faced several challenges in recent years, including significant financial losses and damage to its reputation following several high-profile incidents. Ortberg, who took over as CEO last month, is under pressure to steer the company towards recovery.

The proposed deal reflects a broader effort by Boeing to stabilize its workforce and address the concerns of its employees amidst ongoing financial and operational difficulties. The outcome of the upcoming vote will be pivotal in determining the company’s immediate future and its ability to maintain smooth operations.