U.S. airplane maker Boeing saw its stock rise on Monday after the company reached a tentative agreement with a union that represents 33,000 of its workers.
The four-year contract that Boeing and the International Association of Machinists and Aerospace Workers (IAMAW) agreed upon would see workers get a 25% pay rise over the course of the deal, lump sum payments, and a lower share of health care costs. The union previously wanted a 40% pay increase.
Additionally, Boeing has made a commitment to build its new plane, the successor to the 737 model, at its facilities in Washington state. However, the company is yet to unveil plans for additions to its fleet.
“Negotiations are a give and take, and although there was no way to achieve success on every single item, we can honestly say that this proposal is the best contract we’ve negotiated in our history,” Jon Holden, president of IAM District 751, said in a statement.
However, the deal still needs to be passed by workers, who are scheduled to vote on September 12th. There will be two votes, one on whether to accept the contract and the other on whether to strike if the contract is rejected.
The news about the tentative agreement provided a boost to Boeing’s struggling stock, resulting in a 3.30% jump on Monday. At its close price of $162.91 per share, the stock still remains 35.29% down year-to-date.