RTX Corp. (RTX) Reaches Deal with Machinists Union, Ending Work Stoppage
Jet engine maker Pratt & Whitney has reached a tentative agreement with the union representing about 3,000 machinists who've been on strike since May 4 of this year.
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The machinists had been demanding improved job security and better wages, as well as bulked up retirement benefits and enhanced healthcare coverage. Pratt & Whitney is a subsidiary of RTX Corp. (RTX), formerly known as Raytheon Technologies. Pratt & Whitney makes engines for commercial and military jets, including the U.S. military's F-35 stealth fighter aircraft.
Members of the International Association of Machinists and Aerospace Workers are now scheduled to vote on the contract from Pratt & Whitney on May 27. The company said the tentative agreement addresses 'key points of interest among union members.' Details of the proposed contract have not been made public.
Strike Ends
Union members began picketing at Pratt & Whitney's manufacturing locations in Connecticut after 77% of nearly 2,100 union members voted in favor of their first strike since 2001. 'Pratt and Whitney is a powerhouse in military and commercial aerospace products because our membership makes it so,' said the union in announcing the strike vote.
The strike arrived as Pratt & Whitney parent company RTX faces a potential $850 million hit on profits this year because of tariffs imposed by U.S. President Donald Trump. During RTX's first-quarter earnings call, management said that its Pratt & Whitney and Collins Aerospace subsidiaries would each shoulder just over $400 million of the potential tariff hit.
RTX stock has risen 16% this year.
Is RTX Stock a Buy?
The stock of RTX Corp. has a consensus Moderate Buy rating among 17 Wall Street analysts. That rating is based on 12 Buy and five Hold recommendations issued in the last three months. The average RTX price target of $138.67 implies 4.78% upside from current levels.
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