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Boeing engineers and technical staff have approved a four-year labor pact that includes an immediate 10% pay increase, narrowly averting a strike as the company works to raise production and secure regulatory sign-off on delayed jet models. The deal affects the union that represents roughly 13,000 engineers and 4,000 technical employees.
Terms of the agreement
The contract offers an immediate 10% ratification wage increase, followed by annual raises of 4%. It also allows for merit-based increases of up to 6% in certain years, the union said. Negotiators reached the revised offer after members rejected an earlier proposal that included smaller annual increases.
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Voting results differed between the two groups: the professional unit backed the contract with about 67.6% in favor, while the technical unit approved it by roughly 53.5%. The union, the Society of Professional Engineering Employees in Aerospace, described the outcome as a strong set of gains for its members.
Why the timing matters
The agreement removes the immediate threat of a work stoppage at a sensitive moment for Boeing. The company is trying to stabilize output of its popular jets and obtain federal approval for the 737 Max 10 and the 777X, both of which are behind schedule.
Compounding the timing, the Federal Aviation Administration said on Monday it is reviewing a software issue on the 737 Max 10 that could affect landing procedures in certain scenarios. The agency is assessing whether that issue represents a safety-of-flight concern.
Context from recent labor history
Boeing previously faced a disruptive machinists’ strike two years ago that stalled production until a settlement was reached. The newly ratified contract covers employees in the company’s largest white-collar union and reduces the risk of similar disruption during the current regulatory and production challenges.
Boeing response
In a brief statement, Boeing said it was “pleased with the outcome of the vote.” The company had increased its offer in mid-September after workers turned down the initial proposal, according to the union.
