Boeing’s (NYSE:BA) shares dropped about 2% in premarket trade on Tuesday following the International Association of Machinists’ decision to call off their strike, which had disrupted almost two months of production. Approved was the most current contract offer, which included a 38% wage raise together with a ratification bonus for retirement savings.
Supported by 59% of voting members, the offer which follows an earlier 35% pay raise that workers had rejected, therefore extending the strike that began on September 13. Acceptance of the union will help strikers return to work as early as Wednesday, with all personnel scheduled to start by November 12.
Appointed in August, Boeing CEO Kelly Ortberg expressed hope for rebuilding Boeing’s reputation but also pointed out that challenges persist. The financial loss of the strike has caused Boeing to announce plans to postpone the 777X aircraft, cut about 17,000 positions in the coming months, and look for more finance. Boeing’s stock is currently on the rise, but it still shows a 40% yearly drop.
This article first appeared on GuruFocus.