Boeing Co (BA) shares soared on Monday after the company presented a new labor deal to its striking workers. This move comes as the aerospace giant faces mounting pressure to end the work stoppage that has been costing the company millions of dollars each week.
According to a Wall Street Journal report, Boeing’s new offer includes a 30% pay increase over the next four years, a significant jump from the 25% increase proposed in the previous deal. The company has also doubled the ratification bonus to $6,000, reinstated annual bonuses that were previously slated for elimination, and increased contributions to retirement plans. This new proposal appears to be a significant attempt by Boeing to appease its workers and get them back on the job.
The strike, which began on September 13th, has involved 33,000 members of the International Association of Machinists and Aerospace Workers (IAM). The union had rejected a previous labor deal, citing concerns about wages, benefits, and other key issues. While the new offer addresses some of these concerns, the union has reportedly been seeking a 40% pay increase over four years and a reinstatement of pensions that were eliminated in 2014.
The new offer from Boeing does not include any provisions regarding the restoration of pensions. However, the company has reiterated its commitment to building its next new airplane in the unionized Pacific Northwest. Workers have until September 27th to vote on the proposed agreement.
Despite the stock’s rise on Monday, Boeing shares remain down about 10% over the past month. The successful resolution of this labor dispute is crucial for Boeing, which is facing significant challenges in the aerospace industry, including supply chain issues and intense competition. It remains to be seen whether this latest offer will be enough to end the strike and bring the workers back to the negotiating table.
