.September 9, 2024 04:07 PM

Boeing Co. (NYSE:BA) shares surged over 3% after announcing a tentative labor agreement with IAM Districts 751 and W24. The proposed deal benefits 33,000 employees with the largest wage increase in company history, lower healthcare costs, and improved retirement contributions.

The agreement includes Boeing’s commitment to produce its next aircraft model in the Puget Sound region, a move seen as a long-term investment in the workforce and the region. This marks the first major negotiation between Boeing and IAM Districts 751 and W24 since 2008.

If ratified, the contract will solidify labor relations at Boeing for years to come, providing stability in a crucial segment of its operations.