Asia Tech Wire (Sep 9) -- Boeing reached an agreement with its largest labor union, the International Association of Machinists and Aerospace Workers (IAM), to avert a strike.

In addition to a 25% pay raise over four years, the agreement increases retirement benefits, reduces health care costs and commits Boeing to building its next new airplane in Puget Sound, the company said.

The union represents 33,000 workers who are responsible for building Boeing's best-selling 737 MAX and other jets, primarily in the U.S. state of Washington.

The union's current contract expires this Thursday. At that time, the agreement will go to a vote of union members, who still have the option of rejecting it and striking.