Boeing Company (NYSE:BA) and a union representing about 125 of its firefighters have reportedly reached a tentative contract agreement.
Boeing had previously locked out members of the International Association of Fire Fighters (IAFF) Local I-66 in early May after they rejected two contract proposals.
The move garnered concern from President Joe Biden. The new agreement is expected to be voted on Thursday, with the goal of ending the lockout and concluding months of negotiations, reported Reuters.
“This tentative agreement addresses the needs of our firefighters and the company,” both parties stated, according to the report.
If the agreement is approved, the firefighters are anticipated to return to their duties on Saturday. During a rally outside Boeing headquarters in Arlington, Virginia, on May 14, IAFF President Edward Kelly, AFL-CIO President Liz Shuler, and Rep. Val Hoyle (D-OR) called on Boeing to reach an agreement, per the report.
Recently, lawmakers from Washington State also urged both sides to negotiate in good faith.
Also Read: Boeing’s Employee Speak Up On Safety, Quality Soar 500% After 737 MAX Incident – What’s The Benefit?
While specific details of the agreement have not been disclosed, Boeing indicated earlier in May that it had offered to increase the average annual pay for firefighters from $91,000 to $112,000 in the first year.
Separately, the International Association of Machinists and Aerospace Workers (IAM) is reportedly negotiating a new contract for over 30,000 workers who produce Boeing’s 737 MAX jets.
The production of Boeing’s 737 MAX has significantly decreased as the Federal Aviation Administration (FAA) has intensified factory inspections following a panel blowout on a new Alaska Air Group Inc (NYSE:ALK) 737 MAX 9 in January, which was attributed to an assembly error.
Boeing is scheduled to meet with the FAA on Thursday to discuss its 90-day plan to enhance quality control.
Boeing stock has lost more than 14% in the last 12 months. Investors can gain exposure to the stock via IShares U.S. Aerospace & Defense ETF (BATS:ITA) and Invesco Aerospace & Defense ETF (NYSE:PPA).
Price Action: BA shares are trading lower by 0.62% at $175.08 in premarket at the last check Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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