(Reuters) – Boeing is expected to record more than $1 billion (921.32 million euros) in expenses under the contract proposal submitted to its representative union, sending the U.S. planemaker’s shares higher before the Stock Exchange, the hope of an end to the strike having reassured investors.
Some 33,000 unionized Boeing workers on the west coast of the United States have been on strike since September 13 to demand better pay, leading to the interruption of production of the 737 MAX, the company’s best-selling model. aircraft manufacturer, and its wide-body 767 and 777 aircraft.
The vote by the workers’ union, expected Wednesday, will coincide with the release of Boeing’s third-quarter results, which is expected to post a heavy loss.
“We view the proposal as a positive step,” Ben Tsocanos, head of aerospace at S&P Global, said in an email to Reuters.
“The rapid resolution of the strike is essential to improving the company’s financial situation and supporting the rating,” he added.
Boeing withdrew its previous offer on October 8, providing for a 30% salary increase over four years, after the failure of negotiations with IAM, which for its part demanded a 40% increase.
“Will members accept? We can’t say for sure, although it appears to deliver almost everything the union has asked for,” Seth Seifman, an analyst at JPMorgan, said in a note. increase Boeing’s costs by more than $1 billion.
Sheila Kahyaoglu, an analyst at Jefferies, estimates these expenses at around $1.3 billion.
(Reporting by Allison Lampert in Montreal and Abhijith Ganapavaram in Bangalore; Noémie Naudin; edited by Augustin Turpin)
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