Commercial aircraft manufacturer Boeing Co. (BA) says it has made its “final offer” to 30,000 machinists who are on strike at the company’s facilities in Washington State and Oregon.
The strike, which has dragged on for nearly two weeks, has effectively shutdown Boeing’s operations. The company has now put forward a new contract proposal that includes a 30% pay increase over four years, and said that it represents its “best and final offer.”
Management at the aircraft manufacturer has also offered workers enhanced health and retirement benefits, as well as a one-time signing bonus of $6,000. However, the International Association of Machinists and Aerospace Workers that represents the striking workers isn’t budging and continues to demand a 40% pay increase from Boeing.
A Difficult Year at Boeing
The machinists union claims that the latest offer from Boeing was not negotiated at the bargaining table. Regardless, the union’s leadership has said they will put the latest contract offer to a membership vote. Workers are angry at Boeing for moving production of some commercial aircraft to non-unionized locations, and for eliminating the company’s traditional defined benefit pension plan.
The strike, which is costing Boeing millions of dollars a day in lost production, is the latest problem to hit the company this year. Boeing has been dealing with a quality and safety crisis ever since a door plug blew off one of its aircraft midflight in January. Boeing also recently got a new CEO in Kelly Ortberg.
Is Boeing a Buy or Sell?
Wall Street analysts have a consensus Moderate Buy rating on BA stock based on 15 Buy, four Hold and two Sell recommendations assigned in the past three months. After a 21.98% loss in its share price over the past year, the average BA price target of $210.79 implies 35.9% upside potential.
