Boeing rises after union approves contract, averting strike risk
BA•Boeing shares rose about 4% to $193 after its largest white-collar union approved a revised four-year contract, removing the immediate threat of a strike. The deal includes a guaranteed 10% wage increase upon ratification, annual raises of 4% and potential performance-based increases of up to 2%.
1. Union approves deal
Both bargaining units of the Society of Professional Engineering Employees in Aerospace, which represents about 17,000 Boeing workers, voted to approve the new four-year contract.
2. Pay and production
The agreement provides a guaranteed 10% wage increase upon ratification, annual raises of 4% and potential additional increases of up to 2% based on performance. Ratification removes the immediate threat of a strike that could disrupt certification work on the 737 MAX 10 and 777X, as well as Boeing's planned production and delivery ramp-up.
