Boeing’s Defense Unit, Machinists To Restart Negotiations This Monday: Report

Boeing (BA) and Machinists union officials are set to restart their contract negotiations on Monday, Reuters reported on Friday, citing a union official.

According to the report, roughly 3,200 members of the International Association of Machinists and Aerospace Workers had gone on a strike at the airplane maker’s Defense unit St. Louis-area facilities on Aug. 4. The workers had started the strike after rejecting Boeing’s four-year contract offer.

Retail sentiment on Boeing remained in the ‘bearish’ territory, with message volumes at ‘low’ levels, according to data from Stocktwits. Shares of the company were up nearly 3% during midday trading.

Reuters had reported on Thursday that the offer rejected by the workers included a 20% general wage increase, more vacation time and sick leave, and a $5,000 ratification bonus.

The report noted that the strike since August 4 has shut down production of the F-15 and F/A-18 fighters. Boeing’s St. Louis executive, Dan Gillian, said that the company had made a strong offer, with an average of 40% wage growth, according to Reuters.

The report added, citing IAM International President Brian Bryant, that the workers want a contract offer with improvements to Boeing’s 401(k) retirement plan and higher general wage increases, to help scale and reach the top of the pay grade. Reuters noted that the workers at the St. Louis facility were pressing the company for a contract closer to an agreement reached with its Seattle-area workers.

Boeing’s stock has gained over 30% so far this year and jumped 32% in the last 12 months. 

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