Boeing Proposes New Contract To St. Louis-Area Workers On Strike: Report

• According to Boeing's defense chief, Steve Parker, the company also dropped some restricted stock units and a $1,000 retention bonus from the new offer to provide more cash upfront.
• Parker noted that this offer would raise the average base pay of the workers to $109,000 a year from an average base pay of about $75,000, the report added.
• The workers will be voting on the contract on Wednesday, as per Parker.

Boeing (BA) reportedly offered a new contract to the workers’ union at its St. Louis-area facilities on Monday, along with a larger ratification bonus and additional changes.

According to a Reuters report, the union known as the International Association of Machinists and Aerospace Workers consists of employees at Boeing who assemble fighter jets and munitions at its plants in the St. Louis area and represents over 3,200 striking workers.

The report stated that the offer, aimed at resolving the ongoing walkout, increased the ratification bonus from approximately $3,000 to $6,000 in the revised contract.

Retail sentiment on Boeing remained unchanged in the ‘bearish’ territory, with message volumes at ‘normal’ levels, according to data from Stocktwits.

St. Louis Area Strike

For the last three months, workers at St. Louis have been off the job, which has delayed the production of some major jets. The report noted that the union has been seeking a deal similar to the one secured by Seattle-area employees last year, which included increased retirement plan contributions.

The report stated that the offer aimed to resolve the ongoing walkout and increase the ratification bonus from approximately $3,000 to $6,000 in the revised contract.

The company also dropped some restricted stock units and a $1,000 retention bonus from the new offer to provide more cash upfront, Reuters added.

The report, citing Boeing's defense chief Steve Parker’s letter, noted that this offer would raise the average base pay of the workers to $109,000 a year from about $75,000. According to Parker, the workers will be voting on the contract on Wednesday.

Shares of Boeing have gained nearly 10% this year and increased by more than 30% over the last 12 months.

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