Boeing (BA) has reached a labour agreement with one of its largest unions, avoiding what could have been a costly strike at the commercial aircraft manufacturer.
In a news release, Boeing said that it has achieved a tentative agreement with 33,000 of its workers just days before a strike that would have shutdown several factories in the U.S.
The deal was reached with the International Association of Machinists and Aerospace Workers, which represents Boeing’s workers at its manufacturing plants in Seattle, Washington and near Portland, Oregon.
The tentative agreement includes pay raises totaling 25% over four years, as well as improvements to healthcare and retirement benefits, said Boeing.
The deal also includes a commitment from Boeing to build its next aircraft in the Pacific Northwest region of the U.S. where the Washington state and Oregon plants are located.
Workers still need to approve the new collective agreement at an upcoming union vote scheduled for Sept. 12.
Boeing would have been particularly vulnerable to a labour disruption right now as the company’s finances and its stock have taken a hit this year due to safety and quality issues.
New aircraft orders fell sharply after a door plug on a Boeing made aircraft blew off midflight, leading to enhanced regulatory oversight and new management at the company.
The current labour agreement between the Aerospace Workers and Boeing was set to expire on Sept. 12 and a strike could have begun immediately.
Boeing’s stock has fallen 37% so far in 2024 and is currently trading at $157.62 U.S. per share.
