Boeing Workers Accept New Pay Deal, Ending Seven-Week Strike

Boeing workers have voted to accept the company’s latest pay offer, bringing an end to a damaging seven-week strike.

The new contract grants employees a 38% pay increase over the next four years.

The International Association of Machinists and Aerospace Workers (IAM) announced that striking workers could begin returning to their jobs as early as Wednesday, with a deadline for return by November 12.

The walkout, which began on September 13 and involved approximately 30,000 workers, caused significant disruptions at Boeing’s factories and exacerbated the company’s ongoing crisis.

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

Union leader Jon Holden emphasized the importance of the strike in achieving respect and fair wages for workers.

The union initially sought a 40% pay increase and had previously rejected two offers from Boeing. Boeing’s CEO, Kelly Ortberg, acknowledged the difficulties faced by workers during the strike and expressed a commitment to restoring the company’s reputation for excellence.

The White House took the strike seriously, with acting US Labor Secretary Julie Su traveling to Seattle last month to assist in negotiations.

The strike has cost Boeing nearly $10 billion, according to the consulting firm Anderson Economic Group, and its commercial aircraft division reported operating losses of $4 billion for the third quarter of the year.

In an effort to stabilize its finances, Boeing announced a share sale aimed at raising more than $20 billion.

The company has also warned that a prolonged strike could lead to downgrades in its credit rating, making borrowing more expensive.

In addition to these challenges, Boeing plans to lay off approximately 17,000 workers, with redundancy notices expected to be issued by mid-November.

The current crisis at Boeing began in January following a serious incident involving a mid-air blowout of a passenger plane component.

The company’s space division also faced scrutiny when its Starliner vessel returned to Earth without carrying astronauts.