Boeing Machinists’ Strike Compromises ETFs
October 14th at 3:00pm by Tom Lydon
Talks concerning a five-week strike at Boeing Co. (BA) have broken up, threatening to stall out aerospace-focused exchange traded funds (ETFs).
It seems an odd time for anyone to strike, with unemployment skyrocketing and the country in the midst of an economic crisis. But the walkout by more than 27,000 commercial jet production workers is in its 38th day and the Boeing’s chief administrator Doug Knight reports that the company is disappointed.
Manuel Valdes for the Associated Press reports that the Machinists Union head, Tom Buffenbarger, reported that talks broke down about the future, but nothing specific was provided.
Issues at stake are job security, pay, retirement, benefits and health care, while provisions such as outsourcing and subcontracting are also relevant.
- PowerShares Aerospace And Defense (PPA): down 37% year-to-date; Boeing is 6.9% (black line)
- iShares Dow Jones Aerospace And Defense (ITA): down 36.5% year-to-date; Boeing is 8.4% (green line)
