A tentative agreement agreed by Boeing (BA) and the union that represents its machinists may put an end to the five-week strike that has been impeding the airplane manufacturer’s operations. In a statement released on Saturday, the union stated that it would vote on the revised settlement on Wednesday.
The agreement calls for a 35% pay increase over four years, which is more than Boeing’s previous offers of 30% and 25% but still less than the union’s declared 40% target. Among other perks, the agreement includes an increase in members’ 401(k) plans; nevertheless, it will not reinstate the traditional pension plans that employees desired. After spending billions of dollars, Boeing’s financial troubles have been made worse by the strike, which has reportedly cost the company $1 billion a month, aggravating the aircraft manufacturer’s financial troubles after it spent billions of dollars earlier this year dealing with production halts to resolve a number of safety concerns and inquiries.
Boeing announced a number of cost-cutting steps this week, including delaying the launch of its first 777x airliner and laying off 17,000 employees, or about 10% of its workforce. In an effort to strengthen its finances, the aircraft manufacturer also said earlier this week that it would sell up to $25 billion worth of debt or stock and that it had reached an agreement with banks to obtain a $10 billion credit line. Boeing is among the worst-performing companies in the S&P, having lost over 40% of its 2024 value as of Friday’s close.
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