Boeing Strike Concludes as Workers Approve 38% Pay Increase Deal

Boeing employees have voted to approve the aviation giant’s latest pay proposal, concluding a disruptive seven-week strike.

 

Under this new contract, employees will see a 38% wage increase over the next four years.

 

The International Association of Machinists and Aerospace Workers (IAM) union announced that striking workers may begin returning to their jobs as early as Wednesday or by November 12 at the latest.

 

The strike, involving approximately 30,000 Boeing employees since September 13, significantly impacted production at Boeing’s factories and exacerbated the company’s ongoing challenges.

 

IAM reported that 59% of the striking members supported the new agreement, which also includes a one-time $12,000 (£9,300) bonus and modifications to retirement plans.

 

“With this win and the strike that made it possible, IAM members have stood up for respect and fair compensation in the workplace,” stated IAM leader Jon Holden.

 

Previously, the union demanded a 40% wage increase, and workers had already rejected two previous offers from Boeing.

 

“While recent months have been challenging for all, we remain a unified team,” said Boeing CEO Kelly Ortberg. “There is considerable work ahead to restore Boeing’s reputation for excellence.”

 

Highlighting the strike’s significance, Acting U.S. Labor Secretary Julie Su traveled to Seattle last month to aid negotiations at one of America’s key companies.

 

The strike has cost Boeing close to $10 billion, according to the consulting firm Anderson Economic Group, as the company seeks to stabilize its finances and end the labor dispute.

 

In October, Boeing’s commercial aircraft division reported an operating loss of $4 billion for the third quarter.

 

Last week, the company launched a share sale to raise over $20 billion, following warnings that a prolonged strike could lead to credit rating downgrades, raising borrowing costs.

 

In recent developments, Boeing announced it would reduce its workforce by approximately 17,000 employees, with redundancy notices expected to go out by mid-November.

 

The latest crisis for Boeing began in January when a component of one of its passenger planes failed mid-flight.

 

Additionally, Boeing’s space division faced reputational challenges when its Starliner spacecraft returned to Earth without carrying astronauts.