Boeing said Sunday it had reached a wage agreement with the union representing its Seattle workers, ending weeks of negotiations and averting a threatened strike.
The International Association of Machinists and Aerospace Workers (IAM) had been pushing for a 40% increase in its first full negotiation with Boeing (NYSE:) in 16 years.
The provisional agreement, which after ratification will be
valid for four years, it includes a 25% general salary increase for all employees during the term of the contract.
It also includes a commitment to build Boeing’s next new airplane in the Puget Sound region if the contract is ratified by 11:59 p.m. on Sept. 12, the company said.
The IAM represents about 30,000 workers who build Boeing’s 737 MAX jets in Washington state, where the planemaker employs more than 66,000 people who also work on its 767 and 777 wide-body jets. The unionized workers had voted for a strike order in July.
The deal provides some relief for Boeing, which is facing a production slowdown and regulatory scrutiny after an incident in January when a door stopper came loose from a plane. Alaska Air (NYSE:) passenger plane in the air.