Boeing Reaches Tentative Labor Deal with Technical Workers

Key Agreement Details

Boeing Co. has reached a tentative labor agreement with the Society of Professional Engineering Employees in Aerospace, or SPEEA. The deal covers 1,600 technical workers who joined the company following the acquisition of Spirit AeroSystems Holdings Inc.

The proposed contract includes a $6,000 ratification bonus for each worker and a 20% increase to wage pools distributed over a 58-month period. Individual pay raises will be determined by performance reviews.

Overview of the Situation

This agreement specifically applies to the technical staff integrated from Spirit AeroSystems. A vote on the proposed terms is scheduled for January 30. If ratified, the new contract will become effective on February 1.

This negotiation is separate from the contract for the significantly larger SPEEA engineers' bargaining unit in the Seattle area. Their current agreement is set to expire on October 6, setting the stage for another round of crucial labor talks later in the year.

Potential Market Impact

Securing this agreement helps Boeing avoid potential labor disruptions from this specific unit, promoting operational stability. While the immediate market impact is likely minimal due to the group's size, it serves as a positive indicator for the company's labor relations.

Investors will be watching the outcome as a potential precedent for the upcoming negotiations with the larger union of SPEEA engineers.

Summary

The immediate focus is on the ratification vote by the technical workers. A successful outcome would secure labor peace for this group. The market's broader attention will then shift to the more impactful negotiations involving thousands of Boeing engineers later this year.

FAQ

Q: Which workers are covered by this tentative agreement?
A: The agreement covers 1,600 technical workers who became Boeing employees after the company acquired Spirit AeroSystems.

Q: What are the main financial terms of the proposal?
A: The proposal includes a one-time $6,000 ratification bonus and a 20% increase to wage pools over 58 months.

Q: Does this contract affect Boeing's engineers in Seattle?
A: No, this agreement is separate. The contract for the larger union of SPEEA engineers expires on October 6.

Source: Investing.com