The union members manufacture and assemble fighter jets, such as the F-15 and F/A-18, as well as other critical defense programs.
Boeing (BA) stock edged higher in premarket trading on Thursday after the company reached a tentative deal with striking union members to end a five-week-long strike.
The stock has been on a six-day losing streak and fell around 0.9% to $227.52 in the previous session, remaining slightly below its 52-week high of $242.69.
As per the International Association of Machinists and Aerospace Workers, workers are expected to vote on the five-year contract on Friday.
Over 3,200 Boeing workers with the IAM union in St. Louis and St. Charles in Missouri, and Mascoutah, Illinois, went on strike in August after rejecting a modified four-year labor agreement. The union members manufacture and assemble fighter jets, such as the F-15 and F/A-18, as well as other critical defense programs.
“We’ve found a path forward on a five-year contract offer that grows wages by 45% on average,” Boeing Defense Vice President Dan Gillian said, according to a Reuters News report. “It remains the best deal we’ve ever offered to IAM 837, and we encourage our team to vote yes so we can get back to work building amazing products for our customers.”
Retail sentiment on Stocktwits about Boeing was in the ‘bearish’ territory at the time of writing.
If the fresh contract is ratified, Boeing workers will get a 24% general wage increase over five years and a $4,000 signing bonus, among other terms. Its earlier offer would have seen worker wages go up by 20% and included $5,000 bonus. The deal would have raised compensation by 40% on average, as Boeing had noted previously.
A successful resolution will clear another hurdle for the planemaker that is looking for a turnaround under CEO Kelly Ortberg following a tumultuous 2024, where it was forced to cut back on production after a mid-air incident involving its flagship 737 Max jet, as well as a crippling strike at its commercial planemaking facilities.
“Only positive catalysts going forward,” one Stocktwits user posted on Boeing’s stream.
Boeing stock has gained 27.6% this year. Earlier this week, the company said that it delivered 57 aircraft in August, marking the second-highest monthly delivery in 2025.
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