Boeing shares increased by 5.3pc as analysts expressed optimism about the company’s latest wage proposal aimed at ending a strike involving 33,000 workers, which offers a 38pc wage increase over four years and a $12,000 ratification bonus.
Workers are set to vote on the new proposal after rejecting two previous offers, with some analysts noting that the latest terms come closer to the union’s original target of a 40pc wage increase, alongside the fact that the strike has lasted nearly two months.
The ongoing seven-week strike has disrupted production of Boeing’s popular 737 MAX, 767, and 777 aircraft, resulting in a $6bn loss in the third quarter and posing challenges for CEO Kelly Ortberg’s turnaround efforts.
Mixed reactions emerged from workers regarding the proposal, with some concerned about future offers potentially being regressive, while the option to allocate part of the $12,000 bonus to retirement accounts could appeal to those favouring a defined-benefit pension alternative.
