Dec. 2 (Bloomberg) -- Boeing Co. engineers accepted a four- year contract offer, averting a possible second strike this year at the world’s No. 2 commercial-aircraft maker.

The contract was approved by 79 percent of the engineers and 69 percent of technical workers in mail-in ballots, the Society of Professional Engineering Employees in Aerospace said on its Web site last night. The union represents about 20,500 workers, mostly in Boeing’s manufacturing home in Washington state.

“Passage of these contracts represents a first step in restoring the relationship between Boeing management and its engineering and technical workforce,” Ray Goforth, the union’s executive director, said in a statement.

The union had threatened to walk out over similar issues of job security and compensation that prompted an eight-week strike by machinists. That work stoppage, ended Nov. 2, cut more than $10 million a day off Chicago-based Boeing’s earnings, delayed deliveries and set back the development of new programs such as the 787 Dreamliner.

“These contracts reward our employees for the valuable contributions they make to Boeing’s success,” said Doug Kight, the planemaker’s lead negotiator, in a statement. “These agreements also enable us to remain competitive and position Boeing to continue to win new business during these challenging economic times.”

Stock Declines

Boeing has lost 54 percent of its market value this year amid delays on the 787, the machinists strike and the global financial crisis. Boeing rose 39 cents to $40.27 at 10:16 a.m. in New York Stock Exchange composite trading.

The engineers and machinists both agreed to contracts that run for four years instead of the usual three. That gives Boeing a longer stretch of labor peace in which to roll out models such as the 210- to 330-seat 787.

The new contract offers annual raises of about 5 percent, higher pension payments and overtime rates, and agrees to give workers more input concerning outsourcing decisions. Union members will pay about $200 a year more for improved health care.

The contract covers both engineers and technical workers. About 13,900 Boeing engineers in Washington state, Oregon, Utah and California make an average of $88,000 a year now, and about 6,600 technical workers average $67,000.

‘Island of Success’

The union has called Boeing an “island of success” in the slumping economy, saying that employees deserve more after years of record profit and an unprecedented $276 billion order backlog. Boeing has said any contract improvements must be affordable even if there’s a future slowdown and that it needs outsourcing flexibility to stay competitive.

About 700 engineers in Boeing’s Wichita, Kansas, plant will begin negotiations on their wages and benefits today, because the region’s costs are different from the Seattle area, union spokesman Bill Dugovich said in an interview.

Airbus SAS, based in Toulouse, France, is the world’s largest planemaker.

To contact the reporters on this story: Susanna Ray in Seattle at sray7@bloomberg.net; Gopal Ratnam in Washington at gratnam1@bloomberg.net.

Last Updated: December 2, 2008 10:20 EST