-Boeing said on Sunday it had reached a pay agreement with the union representing its Seattle workers, which reached the end of weekly negotiations and averted the threat of a strike.
The International Association of Machinists and Aerospace Workers (IAM) has been seeking a 40% raise in their first full-scale negotiations with Boeing (NYSE: ) in 16 years.
A fixed agreement, which after confirmation will be
to work for four years, including a general salary increase of 25% for all employees during the contract period.
It also includes a commitment to build Boeing's next new aircraft in the Puget Sound region once the contract is approved at 1159 pm on September 12, the company said.
The IAM represents approximately 30,000 workers who build Boeing's 737 MAX planes in Washington state, where the plane maker employs more than 66,000 people who work on its 767 and 777 widebody jets. Union workers voted to authorize the strike in July.
The deal provides relief for Boeing as it faces production cuts and regulatory scrutiny after an incident in January when a door plug blew off. Alaska Air (NYSE:) gel while in the air.
