Boeing has started the week on a good note, with the company’s stock ascending during the early Asian trading session. It came immediately after the company brokered a deal to prevent a proposed strike action in three of the firm’s plants that manufacture military gears. Also, Boeing’s shares have been pushed higher following approval from U.S. regulators regarding the company’s plan to validate repairs to the company’s flagship 787 Dreamliner.
Even though Boeing shares rallied by 2.4% to trade at $153 during Monday’s trading session, overall, they have shrunk by nearly 21% this year.
The proposed strike at three of the company’s facilities was set to kick off today, but that has now been shoved aside after Aerospace Workers and the International Association of Machinists brokered a new contract with Boeing.
With the proposed three-year contract from the aerospace giant, workers will enjoy a lump sum payment of nearly $8,000. Also, the company has now shelved earlier plans to remove its contributions to employees’ 401 (k) savings plans. While there hasn’t been any concrete agreement between all parties, talks will continue through Wednesday. Nevertheless, analysts predict that the earlier proposed strike could kick off as early as Thursday if both parties don’t find common ground.
Moreover, note that nearly 2,500 of the company’s employees under the aegis of the International Association of Machinist and Aerospace Workers turned down an earlier contract from Boeing last week. The strike will inflict a huge blow to Boeing’s activities, especially since the over 2,500 workers who plan to go on strike are responsible for building military aircraft, including the T-7A trainers, F-15, MQ unmanned refueler, and the F-18.
Boeing set to roll out the 787 Dreamliner
Meanwhile, Boeing has received clearance from the Federal Aviation Administration to begin the rollout of the 787 Dreamliner. This is coming after Boeing’s plan to fix production problems with the 787 Dreamliner got a nod from the relevant authorities.
People in the know stated that deliveries for the 787 Dreamliner will commence within the next few days. Deliveries for the 787 Dreamliner were paused for nearly a year after authorities discovered some quality issues with the aircraft.