Get all your news in one place.
100’s of premium titles.
One app.
Start reading
The Street
The Street
Rebecca Mezistrano

Boeing strike could come to an end if machinists take deal

Transcript:

CONWAY GITTENS: I’m Conway Gittens reporting from the New York Stock Exchange. Here’s what we’re watching on TheStreet today.

Stocks are coming off a six week winning streak - the longest of 2024. Wall Street is gearing up for one of the busiest weeks of earnings season so far. Some 112 companies within the S&P 500 are set to release results. Meanwhile, Walt Disney is making news this Monday. James Gorman, the former CEO of Morgan Stanley, has been appointed new chairman of the board. A CEO to replace Bob Iger won’t come until 2026.

Turning to other corporate headlines….It could be a make or break moment for Boeing. The 33,000 machinists who have been on strike for more than a month have a new contract proposal to vote on. If Boeing can get this contract through - it can get factories back to work and stop losing approximately $1 billion a month.

Related: A timeline of Boeing's CEOs: From engineers to bean counters

This latest offer comes with a 35 percent pay hike stretched across four years. It also comes with a $7,000 ratification bonus plus a one-time deposit of $5,000 into each worker’s 401K plan. In addition, Boeing has agreed to contribute up to 12 percent into retirement accounts. The new package is expected to tack on more than $1 billion in additional labor costs for Boeing.


Watch ICYMI This Week:


The union was fighting for a 40 percent pay hike and the reinstitution of a traditional defined benefit pension plan. Some analysts who cover the stock worry the offer - though better than the last - may still not be good enough to convince machinists to go back to work. The International Association of Machinists and Aerospace Workers did not explicitly endorse this latest offer but did tell workers “it is worthy of our consideration.”

Related: Boeing makes a harsh decision to repair its finances amid strike

Even if workers were to return to factory floors this week, one analyst pointed out that it takes an average of 6 to 12 months after the strike has ended for Boeing to return to full production levels.

That’ll do it for your Daily Briefing. From the New York Stock Exchange, I’m Conway Gittens with TheStreet.


Don’t miss the move: SIGN UP for TheStreet’s FREE Daily newsletter


Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.