-Boeing said Sunday it had reached a wage deal with the union representing Seattle workers, ending weeks of negotiations and averting a strike threat.
The International Association of Machinists and Aerospace Workers (IAM) was demanding a 40% raise in their first full negotiations with Boeing (NYSE: ) in 16 years.
After ratification, there will be a preliminary agreement
valid for four years, covering a total salary increase of 25% for all employees during the contract period.
If the deal is ratified by 1159 on Sept. 12, it also includes Boeing’s commitment to build its next new plane in the Puget Sound region, the company said.
The IAM represents about 30,000 workers who build Boeing’s 737 MAX planes in Washington state, where the planemaker employs more than 66,000 people who work on the 767 and 777 wide-body jets. Union workers voted in favor of the strike mandate in July.
The deal gives Boeing some relief as it grapples with a production slowdown and regulatory scrutiny following the explosion of a door jamb in January. Alaska Weather (NYSE:) while the jet is airborne.
