Boeing agrees 25% pay hike to avert crippling strike

STORY: Boeing has agreed a 25% pay hike for some 32,000 workers to avoid a potentially crippling strike.

The aerospace giant said Sunday it had reached tentative agreement with unions.

If approved, analysts say the deal would be a big win for new chief executive Kelly Ortberg.

He took over last month with a mission to turn around quality at the firm, which has been battered by a series of crises.

The company’s first full labor deal in 16 years also includes better retirement benefits, and more say for unions in safety and quality control.

Boeing is wrestling with such issues after the midair blowout on one of its 737 MAX jets in January.

That followed two fatal crashes for the type in previous years, leaving the firm’s production standards under intense scrutiny.

As part of the union deal, Boeing also committed to produce a successor to the MAX at its factories in the Pacific Northwest.

The company said that would guarantee job security for generations to come.

It and rival Airbus are in the early stages of drawing up plans for a new generation of single-aisle aircraft.

They’re expected to enter service in the late 2030s.

However, the company faces major financial pressure after posting a loss of over $1.4 billion for the second quarter.

Last week, Wells Fargo estimated the company would have to raise $30 billion before developing a new jet - and is already carrying some $45 billion in debt.

For now, Boeing will hope that the new deal, which still has to be ratified by union members, can avert a strike that had been due to start as early as this week.