Boeing shares rise as it announces deal with union, avoids potential strike

Key recommendations

• Boeing shares rose in premarket trading on Monday as markets reacted to a tentative deal between the planemaker and two key union partners.

• The International Association of Machinists and Aeronautics Workers represents more than 30,000 Boeing workers in Washington, Oregon and California.

• The parties have agreed to a deal that includes raises, renewed retirement benefits and parental leave that could avert a strike.

Boeing (nay) shares rose in premarket trading Monday, a day after the planemaker announced a tentative deal with two of its biggest union partners.

The deal would allow about 33,000 Boeing employees in Washington, Oregon and California to get 25 percent raises over the next four years, along with other benefits such as a revamped retirement savings program and parental leave, the company said Sunday.

The 4-year offer will be voted on on Thursday

Members of the International Association of Machinists and Aeronautical Workers covered by the agreement are to vote on whether to ratify the four-year contract on Thursday, when the current agreement is set to expire. A strike could have started with the expiration of the previous agreement, halting production at several facilities.

In addition to the raises, the deal also includes lump sum payments of $3,000 for each covered employee, improved health insurance benefits and lower overtime requirements. The company also agreed to commit to building Boeing’s next-generation jet at its Puget Sound facilities.

“The contract offer offers the largest overall pay increase ever, a lower share of medical costs to make health care more affordable, greater company contributions to your retirement and improvements for a better work-life balance ”, said the chief executive officer (CEO) of Boeing Commercial Airplanes. Stephanie Pope said in a message to employees.

Boeing shares rose 4.5 percent to $164.69 two hours before the opening bell on Monday, but are still down nearly 37 percent since the start of 2024 amid a series of safety concerns and executive changes.

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