Boeing (NYSE: ) shares rose 3.5% to $160 Monday morning as the airplane part maker struck a tentative agreement with union leadership to end costly five-week-old strikes.The deal, subject to a vote by the striking machinists on Wednesday, would see workers receive a 35% pay hike over four years.On September 12, a labor contract with the International Association of Machinists and Aerospace Workers ended, and the contract was not renewed. Subsequently, around 33,000 Boeing workers in the U.S. Pacific Northwest commenced a mass strike.Since then, union officials have rejected the offer of a 25% pay increase.
Boeing’s new union deal isn’t guaranteed
The strike has been costly since it has of Boeing’s 737 MAX and 777 planes. One estimate calculated that Boeing as long the International Association of Machinists and Aerospace Workers strike persisted.Though the deal is yet to be finalized, Boeing investors have signaled confidence, with the plane manufacturer’s up on Monday morning.Over the weekend, the International Association of Machinists and Aerospace Workers stated on social media that the proposed deal “ and is worthy of your consideration.”In its current form the proposal includes raising the striking union workers’ base wages by approximately 35%. It also involves a $7,000 ratification bonus plus a $5,000 one-time contribution to the workers’ 401(k) plans.Additionally, the proposed deal would see Boeing match workers’ retirement-plan contributions of up to 8% of their annual pay.As a result, some of Boeing’s highest-paid workers could earn $140,000 per year, and that would be before any overtime or additional bonuses. More By This Author:
Boeing Stock Jumps As Firm Agrees 35% Pay Rise To End Strikes
