The nearly seven-week strike that has plagued aerospace stock Boeing (BA) may be about to come to an end. Boeing has come back with, apparently, another best and final offer, and this one is sounding a lot better to the machinists’ union. A vote this Monday will decide it for good, though, and shareholders are optimistic, sending Boeing up nearly 3% in Friday afternoon’s trading.
Associated Press reports note that Boeing’s new contract offer apparently comes with “slightly bigger wage increases” than an offer rejected last week. While the union wanted a 40% pay hike over the next three years, Boeing is now offering 38%, or a “…compounded increase of about 43%,” the report noted. Boeing also hiked its bonus payment for ratifying the contract from $7,000 to $12,000.
One key point that seems to be out of play, the report noted, is the issue of pensions. While many of Boeing’s older workers wanted to see that benefit make a comeback—especially in light of the big new slug of operating cash Boeing just landed thanks to its stock sale—Boeing appears not to be budging on that point at all.
DEI Shown the Door
One point where Boeing will likely be trying to save some money is with its diversity, equity, and inclusion (DEI) efforts, as a Bloomberg report noted that that effort is about to be disbanded. The savings, if any, will be rather minor, the report noted, as everyone involved with DEI at Boeing is set to be reassigned to “…another human resources team focused on talent and employee experience.”
With Boeing actively pursuing a 10% reduction in headcount, though, in the wake of a strike that hamstrung operations for months—and with DEI, in general, coming under fire from outside operations and some investors—DEI efforts likely made a good target for cost cuts.
Is Boeing a Good Stock to Buy Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on BA stock based on 15 Buys, six Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 20.02% loss in its share price over the past year, the average BA price target of $195.57 per share implies 26.75% upside potential.
