Boeing has reached a tentative labor agreement with approximately 1,600 white-collar workers at its recently acquired Spirit AeroSystems facility in Wichita, Kansas, the latest step in stabilizing the aerospace giant's labor relations following a turbulent 2024.

The deal, announced Friday, comes just weeks after Boeing completed its $4.7 billion acquisition of Spirit AeroSystems on December 8, 2025. The negotiation team for the Society of Professional Engineering Employees in Aerospace (SPEEA) unanimously recommended that members approve the proposal, which includes significant wage increases and improved benefits.

Deal Terms

The tentative agreement offers workers meaningful improvements across multiple categories:

  • Wage increases: 20% increase to wage pools over approximately five years
  • Promotional funds: 50% annual increase in funds available for promotions
  • Ratification bonus: $6,000 one-time payment upon contract approval
  • Medical benefits: Improved healthcare coverage
  • Dental benefits: Enhanced dental plan
  • Vacation time: Additional paid time off

"This gives us better medical benefits, better dental benefits, more vacation time and a decent set of salary pools for raises."

— SPEEA negotiation team statement

Union members have until 5 p.m. on January 30 to review the offer and vote on the proposal. The current six-year contract is set to expire on January 31, 2026, making timely ratification critical to avoiding any work disruption.

The Spirit AeroSystems Integration

The labor agreement represents an important milestone in Boeing's reintegration of Spirit AeroSystems, a company it spun off two decades ago. Spirit is a critical supplier of fuselage sections for Boeing's 737 MAX and other aircraft models.

Boeing brought Spirit back in-house to gain direct control over quality and production at facilities that have been at the center of manufacturing problems plaguing the 737 MAX program. The acquisition also prevents Spirit from falling into the hands of competitors or creating supply chain complications.

The smooth progression of labor negotiations suggests Boeing has prioritized workforce stability as it works to rebuild production capacity and address quality concerns that have dogged the company since the 737 MAX groundings began in 2019.

Lessons from the 2024 Strike

Boeing's approach to the Spirit negotiations reflects hard-earned lessons from the costly machinists strike that shut down major production lines for seven weeks in late 2024.

That strike, involving more than 33,000 members of the International Association of Machinists and Aerospace Workers (IAM), was the first work stoppage by Boeing machinists since 2008. It ended only after Boeing agreed to a contract including:

  • 38% wage increases over the contract term
  • $12,000 ratification bonus (combining a $7,000 cash bonus and $5,000 401(k) contribution)
  • Average machinist pay rising from $75,608 to eventually $119,309

The strike cost Boeing billions in lost production and delayed deliveries, contributing to a challenging 2025 for the company's recovery efforts. The willingness to offer generous terms to Spirit workers suggests Boeing is determined to avoid similar disruptions as it integrates the acquired operations.

Boeing's Turnaround Progress

Despite ongoing challenges, Boeing has shown signs of recovery in recent months:

Delivery improvements: Boeing delivered approximately 600 aircraft in 2025, its highest total in seven years, though still below pre-crisis levels.

Production ramp-up: The company is gradually increasing 737 MAX production rates, though it remains well below the 47 aircraft per month target that was in place before the MAX groundings.

Quality focus: New leadership has emphasized quality over quantity, implementing additional inspections and process controls throughout the supply chain.

Stock performance: Boeing shares have led the Dow Jones Industrial Average in 2026, rising more than 12% year-to-date as investors bet on continued recovery.

Remaining Challenges

The Spirit labor deal, if ratified, would remove one potential headwind for Boeing's turnaround. But significant challenges remain:

  • Supplier quality: Integration of Spirit operations must address the quality issues that prompted the acquisition
  • Regulatory scrutiny: The FAA continues to closely monitor Boeing's production and certification processes
  • Competition: Airbus has gained market share during Boeing's troubles
  • Defense business: Cost overruns on fixed-price defense contracts continue to weigh on results

What It Means for Workers and Investors

For the 1,600 workers covered by the tentative agreement, ratification would provide job security, improved compensation, and continuity of benefits as they transition from Spirit to Boeing employment.

For investors, the deal represents one less risk factor as Boeing works to restore production and profitability. A smooth integration of Spirit operations is essential to addressing the manufacturing issues that have hampered the company, and labor peace is a prerequisite for consistent production.

The vote results, expected by late January, will determine whether Boeing can check this box and focus on the many operational challenges that remain in its turnaround journey.