Boeing Stock Climbs As Company Sweetens Labor Deal: What You Need To Know

Boeing Co BA shares are moving higher on Monday. The stock appears to be getting a lift after the company sent a new labor deal offer to its striking workers.

What Happened: According to a Wall Street Journal report, Boeing on Monday made a new offer to its machinist union workers who voted to go on strike 11 days earlier.

The proposal comes as Boeing ramps up efforts to end a walkout that’s costing the planemaker hundreds of millions of dollars each week.

The report indicates that Boeing’s new proposal includes a 30% pay increase over the next four years, up from the 25% increase the company offered in its prior deal. The new deal would also double the ratification bonus to $6,000, reinstate annual bonuses Boeing had planned to eliminate and increase company contributions to retirement plans.

Boeing said it would continue with its commitment to make its next new airplane in the unionized Pacific Northwest. The company reportedly told workers they have until Sept. 27 to ratify the deal.

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Thirty-three thousand machinist union employees walked out on Boeing on Sept. 13 after rejecting a labor deal that they said did not address members’ main concerns. The two sides briefly began negotiating terms again last week before talks were halted on Wednesday.

Union leaders are reportedly asking for a 40% pay increase over four years. The workers are also attempting to win back pensions that were eliminated in 2014, although they have acknowledged the need for a compromise. The report indicates that Boeing’s new offer doesn’t include anything about restoring pensions.

BA Price Action: Boeing shares were up 1.96% at market close Monday. Despite Monday’s lift, the stock is still down about 10% over the past month, according to Benzinga Pro.

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