Boeing Union Members to Vote on Third Offer

Members of the Boeing (BA) machinists union are voting today on a third contract agreement that could end a crippling strike that has lasted nearly two months.

The International Association of Machinists is scheduled to vote on Boeing’s new offer, which includes a 38% pay increase, along with a certification bonus that workers can choose to use as part of their retirement savings.

The union rejected a previous offer from Boeing that included a 35% wage increase, to extend the strike that began on September 13.

Aside from the pay improvement, Bank of America analysts noted that the new offer includes “the flexibility to allocate the previous $12,000 one-time endorsement bonus between a paycheck, contribute to a 401(k), or some combination of those things.” “.

Bank of America analysts He also noted that the union leadership, which supports this proposal, has this time highlighted the risk of a worse offer from Boeing if that offer is rejected. Bank of America has a Neutral rating on Boeing stock with a price target of $149.31.

Boeing raised billions of dollars from the stock sale

Boeing recently raised billions of dollars in stock sales and deposit shares to stop the drain on cash due to the strike. Analysts estimate that the work stoppage cost Boeing about $100 million per day.

Kelly Ortberg, who took over as CEO of Boeing The planemaker plans to lay off about 10% of its workforce, or 17,000 workers, “in the coming months” and postpone the launch of its first 777X, the company said in a memo to employees last month.

Boeing shares were little changed Monday morning and have lost more than 40% of their value this year.