Boeing engineers and technical workers have ratified a new four-year contract that includes immediate 10% raises and annual increases of 4%, with merit-based raises up to 6%. This agreement comes after the workers rejected an earlier proposal that featured only 3% annual raises. The vote saw 67.62% approval from the engineering unit and 53.48% from the technical workers, who together make up Boeing’s largest white-collar union, the Society of Professional Engineering Employees in Aerospace.

The new contract prevents a potential strike at Boeing, allowing the company to focus on stabilizing and expanding production of its popular jets. This comes at a critical time, as Boeing seeks federal approval for delayed models such as the 737 Max 10 and 777X. Delays in certification have been partly attributed to a recently flagged software issue on the 737 Max 10 that the FAA is currently evaluating for safety concerns.

Boeing had sweetened its contract offer in mid-September following the rejection of its initial proposal. The revised package was described by the union as achieving significant gains previously thought unattainable. Boeing expressed satisfaction with the vote outcome, which ensures uninterrupted operations during a period of intense production demands and regulatory scrutiny.

Avoiding a strike is particularly important given Boeing’s recent history, where a machinist strike two years ago paused production until a deal was reached. With this new contract approved, Boeing can better focus on ramping up deliveries and addressing ongoing challenges as it competes in the global aerospace market and works to maintain its comeback momentum against European rival Airbus.