Following the temporary avoidance of a strike at three of the aircraft manufacturer’s defense manufacturing facilities, shares of Boeing (NYSE:BA) rose 3.1 % in premarket trade on Monday.
After an overnight negotiation session, according to the International Association of Machinists and Aerospace Workers, Boeing (NYSE:BA) issued a new contract offer, preventing a strike that might have started as soon as Monday. The updated contract proposal will now be put to vote by the three facilities’ employees on Wednesday.
After U.S. regulators approved a business plan to fix issues with the 787 Dreamliner, there was an advancement in the labor negotiations. One or two days should pass before the initial 787 delivery. Boeing’s stock has fallen significantly this year, losing 21% from Monday through Friday, along with the rest of the stock market. As opposed to this, the S&P 500 has dropped 13%.
However, following the company’s earnings last week, the company’s shares have recently defied the trend. Even though Boeing’s quarterly profit decreased, the company said the findings proved it was improving the stability of its operations. The stock of Boeing (NYSE:BA) would see its fourth straight-up day if shares close Monday higher. March of last year was when it last occurred.
Boeing (NYSE:BA) union calls off strike
The union representing Boeing (NYSE:BA) workers announced they would vote on a modified contract instead of going on strike, which was scheduled to begin on Monday. The International Association of Machinists and Aerospace Workers (IAM) and Boeing (NYSE:BA) worked through weekend negotiations. The union mentioned in a press release that members would vote on the revised contract on Wednesday. The vote will be attended by almost 2,500 employees from the St. Louis area who are a part of IAM District 837.
The workers threatened to leave the job last Monday after alleging that Boeing (NYSE:BA) was taking in “billions of dollars each year off the backs of our hardworking members” while failing to give them a fair contract. In response, Boeing (NYSE:BA) said that in addition to giving employees a $3,000 signing bonus and a 7.2 % wage boost, it would also provide a fair 401(K) plan.
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