Boeing workers agree to new contract, end nearly 2-month-long strike
Boeing's machinists have voted in favor of a new contract offer, bringing an end to a grueling strike which lasted over 53 days. The agreement was supported by the union's leadership and was approved by 59% of voting members. "This is a victory," said Jon Holden, the President of International Association of Machinists and Aerospace Workers District 751. "We can hold our heads high. We all stood strong, and we achieved something that we hadn't achieved the last 22 years."
New contract promises significant wage increase
The newly approved contract promises a whopping 38% wage increase for the union's 33,000 members. The development comes as a relief for Boeing, which recently reported a staggering $6 billion loss in Q3 2024. The financial downturn was partly attributed to the strike that had brought production at its Pacific Northwest factories to a standstill.
Boeing's struggles extend beyond strike
Boeing's problems aren't limited to the strike. Quality control and production issues have been haunting its commercial aviation business. The company also reported a $2 billion loss in its defense and space business. In a bid to rally his team, Boeing CEO Kelly Ortberg urged all union members to vote on the proposal saying, "It's time we all come back together and focus on rebuilding the business."
Union's initial rejections and final acceptance
The machinists union had earlier rejected Boeing's first contract offer and voted down a second agreement less than two weeks ago. However, on Monday they were voting for a third time on a contract slightly better than Boeing's second offer. This time around, the union's leaders endorsed the agreement and cautioned members about potentially receiving less if they didn't accept it now.
Boeing's wage offer and unresolved pension issue
Boeing's wage offer improved from an initial 25% to 38% in the final agreement, falling slightly short of the 40% raise the union initially demanded. Workers will also receive a $12,000 ratification bonus as part of this deal. However, one key union demand remains unmet: the restoration of a traditional pension plan lost a decade ago. Boeing has refused to reinstate this plan but has proposed increasing its contributions to union members' 401(k) retirement plans.
