Boeing strike could come to an end as machinists reach tentative deal

Boeing and the leaders of its union have reached a "negotiated proposal" that could end the weeks long strike.

Transcript

00:00I'm Conway Gittens reporting from the New York Stock Exchange. Here's what we're watching on

00:03the street today. Stocks are coming off a six-week winning streak, the longest of 2024.

00:09Wall Street is gearing up for one of the busiest weeks of earnings season so far.

00:13Some 112 companies within the S&P 500 are set to release results. Meanwhile,

00:19Walt Disney is making news this Monday. James Gorman, the former CEO of Morgan Stanley,

00:24has been appointed new chairman of the board. A CEO to replace Bob Iger won't come until 2026.

00:31Turning to other corporate headlines, it could be a make-or-break moment for Boeing. The 33,000

00:38machinists who have been on strike for more than a month have a new contract proposal to vote on.

00:42If Boeing can get this contract through, it can get factories back to work and stop losing

00:48approximately $1 billion a month. This latest offer comes with a 35 percent pay hike stretched

00:55across four years. It also comes with a $7,000 ratification bonus plus a one-time deposit of

01:02$5,000 into each worker's 401k plan. In addition, Boeing has agreed to contribute up to 12 percent

01:10into retirement accounts. The new package is expected to tack on more than $1 billion in

01:15additional labor costs for Boeing. The union was fighting for a 40 percent pay hike and the

01:22re-institution of a traditional defined benefit pension plan. Some analysts who cover the stock

01:27worry the offer, though better than the last, may still not be good enough to convince machinists

01:33to go back to work. The International Association of Machinists and Aerospace Workers did not

01:38explicitly endorse this latest offer, but did tell workers, quote,

01:43it is worthy of our consideration. Even if workers were to return to factory floors this week,

01:50one analyst pointed out that it takes an average of six to 12 months

01:54after the strike has ended for Boeing to return to full production levels.

02:00That'll do it for your daily briefing from the New York Stock Exchange.

02:03I'm Conway Gittens with The Street.

02:08you