Boeing Avoids Strike with Tentative Union Deal, Shares Rise 3.7%

Boeing’s shares surged 3.7% on Monday after the planemaker reached a tentative agreement with its largest union, covering over 32,000 workers, averting a potential strike. The four-year contract, which includes a 25% wage increase, is now subject to a vote on Sept. 12. If rejected, workers could strike as early as Sept. 13.

This marks the first major negotiation led by new CEO Kelly Ortberg, who took over last month. The agreement comes as Boeing works to regain investor and customer confidence while ramping up production of its 737 MAX, following a recent safety incident that dented its stock price.

While the union hailed the deal as one of its best, the final outcome is uncertain. A July strike authorisation vote saw 99.9% approval, and dissatisfaction with the contract terms remains among some union members. A strike could cost Boeing up to $3.5 billion in cash flow, compounding existing financial challenges from defence cost overruns and reduced 737 MAX production.