In all companies people get paid to do work and in all companies some make more than others and everyone wants more. Depending on the company, management often has a scale for most workers and the scale needs to be competitive in order to continually attract people to work there. Unless there is a recession and your workers will be happy to work there because the alternatives is bleak. Occasionally, companies will go for years and workers regret something they have given up and not received back, so the strike is not necessarily about the present working conditions but past ones.

In an article from the Associated Press, the 33,000 factory workers at Boeing voted to accept a contract to end a 7 week strike. The vote was 59% in favor and it was the 4th contract formal offer. The contract included a 38% pay raise over 4 years, ratification and productivity bonuses.

Boeing refused to bring back the defined benefit plan that was frozen a decade ago.

Bank of America analysts estimated Boeing was losing $50 million a day during the strike.

Behind the scenes, President Biden’s acting labor secretary, Julie Su, intervened in the negotiations several times, including the last offer.

The plants in Washington State produce the Max planes which is the cash cow of the fleet for Boeing. Without it, President Ortberg announced plans to layoff 17,000 workers and a stock sale to prevent the company’s credit rating from being cut to junk status.

In the national economy, Boeing is a major contributor to the exporter of goods as most of its planes are sold around the world. In addition, Boeing has continued to sign deals for new planes and has a back log of over 5 years of planes to deliver. Expect good results with the plants humming away.

Linking to dividend paying stocks, with all strikes there are a wide variety of interests to consider including pay (how does not want more) and the functioning of the company as a going concern. If a cash cow for the company is shut down, the stock price will fall which and then the company’s bankers will put pressure of management to get a deal. Every company after paying its employers contributes to the local economy and size does matter. During a strike there are pressures on both the employees and management, as an investor you want stability.

There are more questions than answers, till the next time – to raising questions.