Boeing Reaches Tentative Labor Deal With 25 Percent Pay Hike, New Plane Commitment

Boeing Reaches Tentative Labor Deal With 25 Percent Pay Hike, New Plane Commitment
Boeing 737 MAX aircraft are assembled at the company’s plant in Renton, Washington, June 25, 2024. Jennifer Buchanan/Pool via REUTERS/File Photo
Reuters
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Boeing said on Sunday it has reached a tentative agreement with a union representing more than 32,000 workers in the U.S. Pacific Northwest, in a deal that could help avert a possible crippling strike as early as Sept. 13.

If approved, the proposed four-year contract, which includes a general wage increase of 25% and commitment to build the next commercial airplane in the Seattle area, is an important win for new Boeing CEO Kelly Ortberg, who took over last month with a mandate to turn around quality at the planemaker, an issue that a deal with labor could help.