U.S. aircraft manufacturer Boeing Co. (BA) says it has reached a tentative labour agreement with its striking defence workers, subject to a final vote to be held on Sept. 12.
The agreement, which runs for five years, includes higher wages and a signing bonus, according to the International Association of Machinists and Aerospace Workers Union.
Members of the union who are mostly based in St. Louis, Missouri must still vote on the new collective agreement.
The striking workers primarily assemble and maintain F-15 fighter jets and missile systems for Boeing. More than 3,000 of those workers have been on strike since early August of this year.
The unionized workers had turned down a previous contract offer that included a 20% wage increase over five years and a $5,000 U.S. signing bonus.
At the start of September, Boeing hired a number of new workers to replace those on strike in its defence unit and keep production going to meet its U.S. Department of Defense contract obligations.
This is Boeing’s second major strike in a year.
In autumn 2024, 32,000 unionized machinists who build commercial aircraft at Boeing went on strike for seven weeks after failed contract talks.
BA stock has risen 32% this year to trade at $227.52 U.S. per share
