Tom Reese/Paul Rubillo, Dividend.com
Boeing (BA) just announced late Monday they had tentatively agreed to settle the machinists' union strike.
The union appeared to do real well as it endorsed the deal that includes no additional cost-shifting to workers for healthcare benefits, preserves the company's pension plan, and guarantees a 15% pay increase for each member over the life of the four-year agreement. They will also receive yearly lump-sum payments that could total up to $8,000.
Machinists had been on strike since Sept. 6, halting all commercial aircraft production and potentially adding further delays for the long-anticipated 787 Dreamliner.
Now the company faces the next negotiation with the engineers' union, which represents over 24,000 employees. The engineers and technical workers are demanding higher pay, improved pension funding, better health care and additional vacation days, including Martin Luther King Day as a paid holiday.
The Bottom Line
This will be good news for both sides once everything gets cleared up. We anticipate the deal will get done and then we will be able to get a sense of how quickly things can ramp up for the company's production. We will keep an eye on shares as news continues to roll in. The company has a 3.78% dividend yield, based on last night's closing stock price of $42.36.
Boeing (BA) is not recommended at this time, holding a Dividend.com Rating of 3.3 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.
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