Boeing workers have reached an agreement on a new contract, effectively ending a strike that lasted over seven weeks.
Unionized machinists at Boeing voted on Monday to accept a contract proposal, thereby concluding their strike that lasted over seven weeks. This decision enables the aerospace company to recommence production of its most popular airliner and to generate essential revenue.
The leadership of the International Association of Machinists and Aerospace Workers in Seattle reported that 59% of the members who participated in the voting supported the company’s fourth formal offer, which was the third to be presented for approval. The agreement encompasses salary increases totaling 38% over a four-year period, along with ratification and productivity bonuses.
Nevertheless, Boeing did not acquiesce to the strikers’ request to reinstate a pension plan that had been frozen nearly ten years ago.
The ratification of the contract, occurring just before Election Day, paves the way for a significant U.S. manufacturer and government contractor to restart assembly operations in the Pacific Northwest, which had been halted for 53 days due to the workers’ strike.
Boeing’s CEO, Kelly Ortberg, expressed his satisfaction with the agreement in a message to employees on Monday evening.
“Although the past few months have posed challenges for all of us, we are united as one team,” Ortberg stated. “Progress will only be achieved through collaboration and open communication. We have considerable work ahead to restore the excellence that has made Boeing a renowned company.”
According to the union, the 33,000 workers it represents may return to their positions as early as Wednesday or as late as November 12. The CEO of Boeing indicated that it could take “a couple of weeks” to resume production, partly due to the need for retraining some employees.
Eep Bolaño, a calibration specialist at Boeing based in Seattle who voted in favor of the ratification, remarked that the contract decision is “most certainly not a victory.” She expressed that she and her colleagues made a prudent yet frustrating choice in accepting the offer.
“We faced pressure from a company that was severely weakened, struggling, and unable to meet even two-thirds of our demands. This is a humiliating situation,” Bolaño stated.
Leaders of IAM District 751 have expressed their support for the most recent proposal, indicating that they believe they have maximized their outcomes through negotiations and the strike.
“It is time for our members to secure these achievements and confidently declare victory,” stated the union district prior to the vote on Monday. “We feel that asking members to extend the strike would not be appropriate, given the significant success we have attained.”
Currently, the average annual salary for Boeing machinists stands at $75,608, which is projected to increase to $119,309 under the new contract, as reported by the company.
A prolonged strike would have further jeopardized Boeing’s financial stability and introduced additional uncertainty.
CEO Kelly Ortberg, who joined Boeing in August, has announced intentions to reduce the workforce by approximately 10%, equating to around 17,000 employees, due to the strike and various other factors that have adversely affected the company’s reputation and financial standing this year. Boeing workers have successfully negotiated a new contract, effectively concluding a strike that lasted over seven weeks. The workers, represented by the International Association of Machinists and Aerospace Workers (IAM), had advocated for improved job security, healthcare benefits, and wage increases. The tentative agreement was reached following extensive negotiations and has now received majority approval from union members.
The strike, which disrupted Boeing’s operations and production schedules, underscores ongoing labor challenges within the aerospace sector as workers seek better working conditions and equitable compensation. The new contract is anticipated to offer salary increases, enhanced health benefits, and protections against job outsourcing. With this agreement in place, Boeing is poised to resume normal production activities, potentially alleviating some of the recent strains on the company’s supply chain.
The IAM leadership has conveyed their contentment with the contract, asserting that it fulfills their primary demands, while Boeing representatives have reiterated their dedication to fostering a positive relationship with their workforce.
