White-collar Boeing union approves contract, averts strike

Boeing managed to avert a potentially devastating seven-week strike that would have suspended production of crucial aircraft, as its white-collar union, the Society of Professional Engineering Employees in Aerospace (SPEEA), approved a new contract with its employees. The vote of approval, announced Thursday, ended a contentious negotiation cycle that threatened the aviation giant's operations.

SPEEA, which represents around 13,000 engineers and technicians, ratified the contract, securing higher pay and other benefits for US workers. The union's communication highlighted the team's victory, crediting individual actions and collective strength for achieving these gains. The contract's ratification has lifted Boeing's shares by 3.4%, demonstrating market confidence in the company's ability to recover from the previous strike.

SPEEA vice-president and functional chief engineer for production engineering, Ben Nimmergut, expressed satisfaction with the outcome, looking forward to supporting Boeing's recovery and meeting customer commitments. Boeing's CEO, Kelly Ortberg, had earlier warned of the severe consequences a strike could have on the company's efforts to certify the 777X aircraft and the negative impact on production.

The new contract is projected to significantly increase pay for the average engineer, raising it from $152,000 to $208,000 over the contract's duration. Techs' compensation will also see a substantial increase from $119,000 to $163,000, per SPEEA's statement.