In pre-market trading, shares of Boeing Co. BA saw a slight increase following the announcement of a preliminary agreement between the company and its workers’ union, potentially averting a strike that could have disrupted operations.
Boeing’s shares were trading 2.94% higher in pre-market after reaching a tentative agreement with a union that represents over 32,000 workers in the U.S. Pacific Northwest. This agreement could prevent a potential strike that was set to begin as early as Sep. 13.
At the time of writing, the airline company was trading at $162.28 after closing at $157.62 on Friday, according to Benzinga Pro.
This agreement comes at a crucial time for Boeing as it aims to recover from the financial and reputational damage caused by the grounding of its 737 MAX jets.
The proposed four-year contract, which includes a 25% wage increase and a commitment to build the next commercial airplane in the Seattle area, marks a significant win for new Boeing CEO Kelly Ortberg.
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This agreement is the first comprehensive labor deal in 16 years and now awaits approval on Thursday by Boeing factory workers near Seattle and Portland, Oregon. If the deal fails to secure majority support, the workers could reject it, potentially leading to a strike if two-thirds support a work stoppage in a second vote.
If ratified, the deal would commit Boeing to building the replacement to the 737 at its Pacific Northwest facilities if the project begins during the contract’s lifespan. However, the timeline for the announcement of the next jet by the aircraft manufacturer remains unclear.
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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
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