Boeing had one of its best Fridays in years. Hours after reaching a tentative four-year labor deal with roughly 17,000 engineers that headed off a looming strike, the company learned the Pentagon had nearly quadrupled the ceiling on one of its biggest defense contracts, adding $13.4 billion in potential work.

The Society of Professional Engineering Employees in Aerospace (SPEEA) and Boeing reached the tentative agreement Friday, Sept. 11, covering professional and technical union members whose current contract expires Oct. 6, according to Reuters. Members had overwhelmingly rejected an earlier offer in an Aug. 21 vote.

What Changed

The new terms include a 10% guaranteed wage increase effective Oct. 16, a further 4% guaranteed increase at the March 2027 compensation review, and 6% annual wage pools from 2028 through 2030, each with a 4% guaranteed component — a sharp jump from the 3% general increases in the offer members rejected last month. The deal also revises work-from-home and overtime rules, according to a wire report carried by the Honolulu Star-Advertiser. As is standard for tentative agreements, SPEEA members will still need to vote on ratification before the current contract's Oct. 6 expiration.

Separately the same day, the U.S. Department of War awarded Boeing a $13.4 billion ceiling modification to an existing 2019 contract, raising its total value from $5.7 billion to $19.1 billion, according to Investing.com. The modification adds Foreign Military Sales work for Japan and Israel, with future partner countries expected to be added. The Air Force Life Cycle Management Center at Wright-Patterson Air Force Base in Ohio is overseeing the contract, which now runs through April 2035.

FROM STRIKE THREAT TO $13.4 BILLION IN ONE DAY.

The one-two punch comes as Boeing has spent recent years trying to rebuild its reputation and finances after a string of manufacturing and safety controversies. A clean labor deal paired with a massive new defense injection gives the company rare back-to-back good headlines.

What's Next

SPEEA has not yet announced a ratification vote date. If approved, the new contract would take effect immediately after the current one expires Oct. 6, avoiding any work stoppage.