Boeing reaches tentative labor deal with 25% pay hike and commitment to replace 737 planes

Proposed contract hailed by the union as the best it had ever negotiated and is seen as early win for new CEO

Boeing and its biggest union have reached a tentative deal covering more than 32,000 workers and averting a possible strike that was set for this week.

The proposed four-year contract was hailed by the union as the best it had ever negotiated. It is also an early win for new Boeing CEO, Robert Kelly" Ortberg, who is tasked with turning around the struggling planemaker.