Following a vote by employees at three defense production facilities in the St. Louis region to approve the company’s improved contract offer, which averted a potential walkout involving 2,500 workers, Boeing (NYSE:BA) gained 2% on Wednesday.
Without the company’s amended offer over the weekend, the employees, who are represented by District 837 of the International Association of Machinists and Aerospace Workers, were prepared to strike.
The union’s leadership had advised members to reject earlier plans to reduce employer contributions to employees’ 401(k) savings plans in favor of accepting Boeing’s (NYSE:BA) offer, which includes an $8,000 lump sum payment for new hires and an average 14% general wage rise over three years.
Last week, CEO David Calhoun stated that a walkout by employees would have probably resulted in delivery delays.
Following weekend news of the strike delay and FAA acceptance of adjustments to the inspection protocol, which should allow the company to resume Dreamliner deliveries, Boeing’s (NYSE:BA) share prices have increased by 4.5 percent this week.
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