Boeing Engineers OK Contract

Boeing Co.’s largest engineers union voted to accept a three-year labor agreement that boosts pay and preserves healthcare benefits, helping the company avoid a strike and keep its 787-model aircraft program on schedule.

About 90% of the members of the Society of Professional Engineering Employees in Aerospace who voted approved the contract, the Chicago-based company said Friday. Wages will increase 17% for engineers and 15% for technical workers. Most of the union’s 18,000 members work in the Seattle area. The average salary of a Boeing engineer will increase to at least $95,884 over three years, while the average technical employee’s pay will rise to at least $71,134.

The agreement allows work to continue on the more fuel-efficient 787 Dreamliner model, a key part of Chief Executive James McNerney’s strategy to regain the top ranking in commercial-jet deliveries from Airbus by 2008. McNerney settled a strike by 19,000 machinists in record time in September, helping to avoid the loss of aircraft orders.

About 800 engineers and technical workers who work at Boeing’s defense business in Wichita, Kan., will vote Monday on a separate labor agreement. Union leaders recommended the workers reject it, saying the contract offers less than the Seattle engineers’ contract. No talks have been scheduled in a monthlong strike by 1,500 machinists at Boeing’s rocket business.

Boeing shares fell 23 cents to $69.44.