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Key Takeaways
- Boeing shares advanced Monday on word the plane maker and its machinists tentatively have agreed to a new contract, which could end the union’s five-week strike.
- The proposal gives the union workers a 35% pay raise and $7,000 ratification bonus.
- The strike has crippled the company, which announced cost-cutting moves and took steps to raise cash as the walkout slashed production.
Boeing (BA) shares advanced 3% Monday afternoon as the plane maker and its 33,000-member machinists union struck a tentative agreement over the weekend that could end the five-week strike that has crippled the company.
The deal includes a 35% bump in wages over four years, a $7,000 ratification bonus, and a boost to members’ 401(k) plans, though it would not bring back the traditional pension plans workers wanted.
The union said it would be putting the proposal up for a vote on Wednesday.
Boeing has been hammered by the walkout, which began Sept. 13. Since then, the company has announced significant cost-cutting steps, including plans to lay off about 17,000 employees. It also wrote in a regulatory filing it planned to raise up to $25 billion through the sale of debt or stock.
Shares of Boeing hit a two-year low earlier this month, and despite a slight rally, they’ve still lost nearly 40% of their value this year.
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