Boeing shares rise as planemaker makes new wage offer to end strike

Boeing shares rose 2 per cent before the bell on Friday after the US plane maker bumped its wage hike offer to about 33,000 striking workers, its latest effort to end a damaging strike after two earlier contract offers were rebuffed by employees.
The workers will on Monday vote on the proposal that boosts wage hike to 38 per cent over four years from a 35 per cent hike earlier and offers an improved signing bonus, but does not meet their key demand of a return to a defined-benefit pension.
It is not clear which way workers will vote as the new proposal has evoked mixed reactions. The labour action has prompted Wall Street analysts to scan Reddit posts and social media reactions to gauge workers’ sentiment after employees defied predictions on previous contracts votes.
The seven-week strike has halted production of Boeing’s bestselling 737 MAX jets as well as its 767 and 777 wide-bodies, leading to a $6 billion loss for the plane maker in the third quarter and complicating chief executive Kelly Ortberg’s turnaround efforts.
The plane maker recently moved to strengthen its balance sheet through a stock offering of up to $24.3 billion (€22.4 billion) amid a threat of a ratings downgrade. Boeing shares have fallen 8.3 per cent since the strike began in September. – Reuters