Boeing Proposes 20% Raise and $5,000 Bonus Ahead of Crucial Fighter Jet Union Vote

Boeing (NYSE: BA) has rolled out a new contract proposal to the union workers assembling its fighter jets near St. Louis, setting the stage for a pivotal vote this Sunday. The offer puts a 20% wage increase on the table spread over four years, sweetened with a $5,000 ratification bonus. On top of that, the deal promises expanded vacation and sick leave benefits.

The union in question, the International Association of Machinists and Aerospace Workers District 837, represents over 3,200 members. Local leadership is backing the offer and urging a yes vote before the current agreement expires.

This move comes on the heels of Boeing's recent win to build the U.S. Air Force's new F-47 fighter jet - a contract that has spurred expansion of their St. Louis manufacturing footprint. With production ramps likely, Boeing's defense arm looks set to increase headcount in the area as demand grows.

No word yet on how the market is reacting long-term, but the wage hike will presumably add some cost pressure while Boeing plans for growth. The timing is interesting, as defense spending trends and geopolitical dynamics continue to influence aerospace suppliers.

Stay tuned for the voting outcome, which could either smooth the way for Boeing's upcoming projects or throw a wrench into its production rhythm.