SEATTLE
Boeing Co. (BA) eliminated an immediate operational threat as its largest white-collar union, the Society of Professional Engineering Employees in Aerospace (SPEEA), approved a four-year contract that averts a strike set to begin Oct. 7.
The agreement grants workers a 10 percent guaranteed wage increase followed by 4 percent annual raises plus up to 2 percent performance-based compensation. SPEEA members rejected Boeing's initial offer, which capped guaranteed increases at 3 percent and tied them to inflation.
A strike would have disrupted certification work on the 737 MAX 10 and 777X, both running behind schedule, and slowed Boeing's push to increase manufacturing output and accelerate deliveries. Avoiding that outcome removes a key downside risk to BA's near-term execution.
The 737 MAX 10's path to certification still faces headwinds. A software issue that can cause pilots to lose automated landing guidance in some 737 MAX aircraft has drawn FAA scrutiny. Boeing is developing a permanent fix; resolving it is prerequisite for regulatory approval.
Separately, Boeing secured a $20 billion Pentagon contract for the U.S. Navy's F/A-XX next-generation stealth fighter, diversifying revenue beyond commercial aircraft.
