With the aerospace behemoth revealing a tentative agreement with union leaders representing 33,000 striking workers, potentially resolving a protracted labor conflict upsetting its commercial jet output, Boeing Co. (BA, Financial) saw its stock nudge higher Friday. A statement from the International Association of Machinists and Aerospace Workers (IAM) indicates that should the plan be approved, the workforce will gain a 38% pay raise over the next four years along with a $12,000 signing incentive for all returning personnel.
Emphasizing the significant compromises made throughout weeks of stalled discussions, IAM District 751 officials have approved the plan and asked union members to vote in favor during the Nov. 4 election. "We are at that point now and risk a regressive or lesser offer in the future," the union said in a statement on Thursday night. With great demand for commercial aircraft, the protracted strike has affected Boeing's output, so a settlement is essential for both the operational and financial recovery of the business. With union permission, Boeing could quickly bring its manufacturing line back to fulfill current order backlogs.
