Boeing shares rise as machinists union votes to end strike

Boeing (BA) shares are rising in premarket trading on Tuesday after the machinists' union voted to approve a third contract agreement, ending a crippling strike at the plane maker that has lasted nearly two months.

Members of the International Association of Machinists accepted an offer that included a 38% salary increase and a ratification bonus that workers could use as part of their retirement savings. The union rejected an earlier offer from Boeing that included a 35% wage increase, extending the strike that began Sept. 13.

Boeing's latest proposal received the support of 59% of union members' votes, the union said.

The share was recently almost 2% higher.

“Although the last few months have been difficult for all of us, we are all part of the same team,”
Boeing Chief Executive Officer (CEO) Kelly Ortberg, who took over the position in August, said in a statement. “There is still much work ahead to return to the excellence that made Boeing an iconic company.”

Strikers must return to work by November 12th

According to the union and the company, the striking employees, whose absence had brought production to a virtual standstill, can return to work on Wednesday “and must return to work by the start of their shift on November 12, 2024.”

Boeing has been hit by a series of crises this year, starting in early January when a door plug came loose during an Alaska Airlines (ALK) flight. The cash outflow from the strike has prompted the plane maker to raise billions of dollars in financing.

Ortberg has announced plans to lay off about 10% of its workforce, or 17,000 workers, “in the coming months” and is postponing the launch of Boeing's first 777x jetliner.

Boeing shares are still down about 40% this year.