A graduate in German, Jake has a passion for history and regional aviation, and enjoys sampling new carriers and aircraft. He has visited OEM facilities as far and wide as Bristol, Toulouse, and Seattle, and recently enjoyed the milestone of flying his 150th sector as a passenger. Based in Norfolk, UK.
Engineers working at 
Boeing have decided not to strike after ratifying a new four-year pay deal. After an initial 10% raise, workers will see futher incremental pay hikes in 2027, 2028, 2029, and 2030, and the new contract also features other changes and perks. Approval was far from unanimous among the union members who voted on the matter, but it was ultimately enough to get it over the line.
While, for Boeing, this means increased expenditure in terms of staff pay, the deal could prove to be a shrewd economic step forward in the longer term. For instance, Live & Let's Fly notes that, with the potential strike threatening the certification of the 777X, the new contracts could be the cheapest way of keeping things on track. The 737 MAX's production rates were also at risk as strikes loomed.
Ratified Pay Deal Saves Boeing From Another Strike
Boeing engineers represented by the Society of Professional Engineering Employees in Aerospace called off planned strike action after voting to ratify a new four-year pay deal earlier this month. According to the SPEEA, the new contract was approved by 67.62% of its Professional members and 53.48% of its Technical members: these figures are far from unanimous, suggesting discontent remains.
The main headline of the new deal is that it secured an immediate 10% pay rise for the Boeing engineers in question. According to Inside Flyer, "the contract also changes work-from-home language, adds professional-unit overtime limits, increases incentive-plan value and boosts 401(k) contributions for younger workers." The SPEEA stated earlier this month that its "work is not done," telling its members that:
"As we work to restore aerospace professionals and technicians to the center of Boeing’s universe, we must continue to build our union strength and our networks so that when called upon again, we are ready."
The Pay Deal Has Various Stages
Coverage of the matter by the likes of Live & Let's Fly and Insider Flyer highlights the fact that the four-year contract has various incremental increases beyond the initial 10% hike. This first raise will then be followed by a 4% boost in March of 2027, with 6% wage pools (with a guaranteed minimum increase of 4%) also locked in for 2028, 2029, and 2030. Across the four years, this results in big gains.
On this front, Live & Let's Fly notes that, per the SPEEA, there is a minimum guaranteed compound increase of 28.7%, with the projected average compound gain being 36.3%. With the initial offer having reportedly been just 3%, the engineers' union has served them well in ratifying a new contract that better reflects factors like inflation and their hard work. In the long term, Boeing should also see its value.
Aside from the raw pay increases, the deal's other benefits will also come into effect at different times. For instance, the SPEEA notes that 2027 will herald the arrival of "new fertility benefits, the new Performance Management process, the 40% increased Employee Incentive Plan target and an increase in 401(k) contribution for those under 40." These will be followed in 2028 by things like better dental benefits.
The Planned Strike Had Threatened To Derail 737 MAX Production & 777X Certification
In recent weeks, Boeing's aircraft production and certification initiatives hung in the balance as its engineers weighed up potential strike action and their union fought for a better pay deal. For instance, Simple Flying reported back in early September that the strike vote could 'wipe out' the 737 MAX's 42-per-month production rate. This would have increased Boeing's backlog and hurt its push to increase to 47.
The engineers' discontent also threatened progress on the widebody side of things, with Simple Flying also reporting last month that, according to Boeing CEO Kelly Ortberg, the 777X's certification faced a shutdown amid the strike worries. With the 777X being Boeing's big hope for the next generation of long-haul travel, it may find that conceding to the pay demands works out better for it in the long term.