Union Squabble Could Force Boeing to Move Production of New 777X
Boeing (NYSE: BA) might build its 777X jetliner someplace besides Washington because of a conflict with a union. The company hasn't been able to make a new contract with the International Association of Machinists and Aerospace Workers.
The 777X is a long range airliner with the widest wingspan Boeing has ever built. On Thursday, Boeing released a press release that indicated the company is considering moving production, which it needs a contract to do so.
The big sticking point in the labor negotiations is Boeing's desire to switch from a defined benefit pension system to a defined contribution pension system. Earlier media reports indicated that Boeing and the union were about to reach an agreement.
News of the union dispute doesn't seem to have affected Boeing's stock. Its share price was up by $2.05 or 1.56 percent in morning trading on Friday. Boeing has been on a roll lately -- its share price has increased by 90.44 percent in the last year.
Boeing has been posting some impressive numbers in recent months because of the increased demand for some of its airliners, such as the 777X and the Dreamliner. The aircraft maker's diluted TTM EPS grew by 10.14 percent in the last year. If those numbers are indication, the union dispute will have little effect on Boeing's financials or share price.
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