Boeing (BA) has reached a tentative agreement with striking International Association of Machinists and Aerospace Workers (IAM) members. Union workers are set to vote on the deal on Wednesday, which could end the five-week-long strike. The news sent Boeing shares higher during intraday trading on Monday, though the stock is down roughly 38% year-to-date. Wednesday’s union vote coincides with Boeing’s release of third quarter earnings results. Former Medtronic CEO Bill George joins Josh Lipton and Jared Blikre on Market Domination to discuss what Boeing and new CEO Kelly Ortberg need to do to turn things around. George says the tentative deal “is a very lucrative settlement” for the workers: “Boeing had to do it to get people back to work. They desperately need to get the cash flow from aircraft coming off the production lines. Their customers are demanding that they get the aircraft. So I think they had no choice but to settle it. But it’s a far more lucrative settlement than you would expect in a 2% inflation environment, but I’m glad they got it settled.” He says that Boeing’s current challenges are “the reality of what happens when you play the short-term financial game and don’t take into account the long-term nature of Boeing’s business.” Boeing CEO Kelly Ortberg — who started his role as chief executive on August 8 of this year — needs “to handle these short-term problems and pacify his customers to try to get them today’s aircraft, but he’s got to commit to the long term. [Former Boeing CEO] David Calhoun did not do that. He worked short-term problems, and they seemed to get worse.”
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