SEATTLE, Washington: Boeing and the union representing about 17,000 engineers and technical workers have reached a tentative four-year contract agreement after employees overwhelmingly rejected an earlier offer in August.

The new proposal includes higher general wage increases than Boeing's first offer, which members of the Society of Professional Engineering Employees in Aerospace, or SPEEA, rejected in an August 21 vote.

If approved, members of SPEEA's professional and technical units would receive a 10% wage increase on October 16, followed by 4% raises plus merit-based increases from 2027 through 2030.

"Our final contract offer addresses the top priorities identified by our employees and SPEEA's bargaining teams, including an immediate wage increase and larger wage pools with guarantees," Boeing's Ben Nimmergut, vice president and functional chief engineer for production engineering, said in a statement.

The latest proposal also includes changes to work-from-home policies and overtime limits for members of the professional unit, according to the union.

Following the rejection of Boeing's initial offer, SPEEA members identified higher general wage increases as their top priority in an internal survey.

"We heard you clearly, in your survey responses and comments at Town Hall meetings. We took your words with us back to the table, and they shaped every conversation we had with Boeing executives," SPEEA's negotiating team said in a statement.

The tentative agreement "isn't everything we'd asked for, but it represents a real step forward toward improving our pay and work lives and rebuilding the relationship between Boeing leadership and our union's members," the team said.

The existing contract expires on October 6. If a new agreement is not finalized by then, SPEEA members could go on strike.

The union's members play an important role in Boeing's efforts to certify its 737 MAX 10 and 777-9 aircraft, both of which are years behind schedule.

Boeing's earlier offer provided for 3% general wage increases. Several SPEEA members said those increases would nearly guarantee that their salaries fell behind inflation.

The Consumer Price Index for the Seattle area, where most SPEEA members work, rose 4.5% over the past year, according to data released by the U.S. Bureau of Labor Statistics in July.

SPEEA has not negotiated a new contract with Boeing for its Northwest members since 2012. Members instead approved contract extensions in 2016 and 2020.