The machinist union of commercial aircraft manufacturer Boeing (BA) has said its members will vote on a new contract proposal from management, potentially ending the work stoppage.
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The new proposal is not be everything the union wanted. Boeing is now offering a 35% wage increase, to take place over the next four years, as well as a signing bonus of $7,000, and a boost in 401(k) contributions.
The union, for its part, was looking for a 40% hike and a return to the pension program. Boeing’s employees are set to vote on the contract October 23, which is the same day that the company announces its quarterly results.
A National Crisis
The news comes at an excellent time for Boeing. A report from the Wall Street Journal declared that the crisis at Boeing should be considered a “national emergency.” The strike alone is bad enough, the report noted, but it went on to state that Boeing has been investigated several times by the federal government, and its production delays are also a potential issue.
But with the strike potentially about to be resolved before this week concludes, and with Boeing planning to shutdown production on the 767 line once all the current orders are filled, we might indeed be looking at a brand new Boeing.
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 14 Buy, five Hold and two Sell recommendations assigned in the past three months, as indicated by the graphic below. After a 12.14% loss in its share price over the past year, the average BA price target of $197.83 per share implies 24.05% upside potential.
