Boeing Workers Approve Four-Year Contracts Amid Production Push

Boeing workers have approved new four-year contracts with the company, removing the threat of a strike that could have disrupted production and certification work. The Society of Professional Engineering Employees in Aerospace (SPEEA) represents about 13,000 Boeing engineers and 4,000 technical workers. Both units voted to ratify their respective agreements.

The new contracts offer a 10% wage increase upon ratification, followed by annual raises of 4%. The agreements also provide the potential for an additional 2% performance-based increase, according to Reuters. This development is seen as a positive step for Boeing as it ramps up jet production and works to secure delayed certifications for the 737 MAX 10 and 777X.

Jefferies reiterated its 'Buy' rating and $265 price target for Boeing following the union vote, stating that the agreement removes near-term risk to 737 production and 777X certification. The company's stock rose more than 3% during regular trading on Thursday in response to the news.