So the strike at aerospace company Boeing Co. (BA) has finally come to an end. The latest offer from management was apparently good enough, and the post-mortem analysis of the strike now begins.
Analysts and media pundits say that the strike at Boeing is part of a larger “era of labor activism” that had been “long in decline at U.S workplaces.” Indeed, Boeing’s strike was just one among hundreds, as there were 470 work stoppages, either strikes or lockouts, that took place in 2023.
When asked, several unions—including the United Auto Workers and the International Association of Machinists and Aerospace Workers—noted that workers stepped in to make necessary sacrifices back during the pandemic. Those sacrifices helped keep companies afloat in an era when many of them could not operate. But now that companies are making record profits, it is time for the companies to reward workers, say the unions.
Damaged Relations
A potentially larger problem at Boeing is damaged relations between management and workers. The strike was antagonistic, with Boeing brass threatening the workers to get back to work. In the end, even union bosses suggested that members take the latest offer, fearing the next one would be worse.
However, Boeing workers only accepted the contract by a fairly thin majority, with only 59% of workers voting in favor of the contract. That’s 41% of workers who voted against it. And that 41% will be coming back to a contract they never wanted. Is it only a matter of time until another strike happens?
Is Boeing a Good Stock to Buy?
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 21.15% loss in its share price over the past year, the average BA price target of $193.62 per share implies 27.65% upside potential.
