Boeing (BA) and the union representing its machinists have reached a tentative agreement that might end the five-week strike that has hampered the airplane manufacturer’s operations. According to a statement released on Saturday, the union hopes to vote on the revised settlement on Wednesday.
The agreement includes a 35% salary increase over four years, up from Boeing’s previous proposals of 30% and 25% but still below the union’s stated aim of 40%. The agreement also includes increasing members’ 401(k) plans, among other benefits, but it does not reinstate the traditional pension programs that workers sought.
Boeing’s operations have lost an estimated $1 billion per month due to the strike, exacerbating the company’s financial troubles after burning through billions of dollars earlier this year to deal with production halts to resolve some safety issues and probes. Boeing announced a series of cost-cutting steps last week, including the reduction of around 10% of its employment, or 17,000 people, and the postponement of the launch of its first 777x airliner.
The aircraft manufacturer also announced earlier this week that it intends to sell up to $25 billion in debt or equity and that it has reached an agreement with banks to get a $10 billion credit line, among other measures to strengthen its finances. Boeing’s stock price has dropped by more than 40% in 2024 as of Friday’s close, making it one of the worst-performing firms in the S&P 500 this year.
