Boeing engineers approve contract, averting possible strike — CNBC
In the United States, Boeing engineers and technical workers approved a new four-year contract, making it possible to avoid a potential strike at the company. The agreement provides for an immediate 10% pay increase after ratification, CNBC reports.
Contract terms
The Society of Professional Engineering Employees in Aerospace union represents about 13,000 Boeing engineers and 4,000 technical workers. These groups make up the company's largest union of white-collar employees.
The contract also provides for annual pay increases of 4%. Depending on performance, the increase may reach 6%.
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The employee group that includes engineers supported the agreement with 67.62% of the vote. Among technical workers, 53.48% voted in favor of the contract, the union said. In mid-September, Boeing improved its offer after workers rejected a previous version with annual pay increases of 3%.
Aircraft production and approval
Approval of the contract allows Boeing to avoid a strike at a time when the company is seeking to stabilize and increase production of its aircraft. The manufacturer is also seeking federal approval for the 737 Max 10 and 777X models, which has been delayed for years.
On Monday, the U.S. Federal Aviation Administration said it was assessing a software issue on the 737 Max 10. It could affect landing procedures in certain scenarios, and the regulator is determining whether it poses a threat to flight safety. A Boeing mechanics' strike two years ago led to a production shutdown until the parties reached an agreement.
