Airplane maker Boeing narrowly managed to avoid a strike in its three defense facilities in the St. Louis area. The International Association of Machinists and Aerospace Workers (IAM), which represents Boeing’s 2,500 defense workers, decided to cancel a strike that was planned on Monday in order to review the company’s latest contract offer.
The company and the union held bargaining talks over the weekend, prompting Boing to make an improved offer. The workers are now set to vote on whether to accept the offer or reject it, with the voting scheduled for Wednesday.
“This new offer builds on our previous strong, highly competitive one and directly addresses the issues raised by our employees,” said Boeing in a statement. “We are hopeful they will vote yes on Wednesday.”
Most improvements are related to 401(k). The workers will now have the option to get a lump sum payment of $8,000 or have it deposited to the 401(k) plan.
While Boeing probably feels good about avoiding strikes for now, this doesn’t mean that they are in the clear. The workers could go against the recommendation of the union leadership and reject the contract offer, causing further headaches for the company.
Despite the potential risks ahead, investors continued to like Boeing shares. The company’s stock saw a 4.5% jump on Monday and is currently trading at $166.51 per share. This marks its highest price since late April.