After more than seven weeks of striking, Boeing workers have voted to accept a new contract, ending a walkout that significantly impacted the company's production. The International Association of Machinists and Aerospace Workers (IAM) said 59% of the 33,000 striking workers approved the latest offer.
The new contract includes a 38% wage increase over four years, a $12,000 ratification bonus, and an increase in the company's 401(k) match to 100% of the first 8% of pay. This agreement marks a significant victory for the workers, who initially demanded a 40% pay increase.
Boeing CEO Kelly Ortberg expressed relief and optimism, stating, "While the past few months have been difficult for all of us, we are all part of the same team. There is much work ahead to return to the excellence that made Boeing an iconic company."
The strike, which began on September 13, 2024, resulted in an estimated $9.6 billion in losses for Boeing. The financial strain was exacerbated by the Federal Aviation Administration's (FAA) grounding of Boeing's 737 MAX planes following a mid-air blowout incident in January 2024.
Acting U.S. Labor Secretary Julie Su played a crucial role in brokering the deal, highlighting the importance of the resolution for both the company and the broader economy. The strike's end is expected to help Boeing resume production and mitigate further financial losses.
Union leaders emphasised the significance of the agreement, with IAM District 751 President Jon Holden stating, "This contract was different, we had massive leverage this time. This was a defining moment tonight, and we were able to change the past negotiations."
Despite the positive outcome, some workers expressed mixed feelings, acknowledging that not all demands were met. However, the overall sentiment among union members was one of relief and a renewed commitment to rebuilding Boeing's production capabilities.
As Boeing workers prepare to return to their jobs, the company faces the challenge of restoring its production rates and addressing the underlying issues that led to the strike. The new contract is seen as a step towards rebuilding trust and improving the company's corporate culture.