Boeing Workers End Strike with New Contract Approval

On Monday, striking workers at Boeing approved a new contract deal, bringing an end to a strike that lasted over seven weeks. This stoppage had significant financial implications for Boeing, costing the company billions.

The vote came from the International Association of Machinists and Aerospace Workers (IAM) District 751, which reported that the majority, 59 percent, ratified the new offer after previously rejecting two other proposals.

This agreement allows around 33,000 employees in the Seattle area to return to their jobs and resumes operations at two of Boeing's major assembly plants. This is crucial for the company as it seeks to recover from several ongoing challenges.

The newly approved contract includes various benefits for workers, such as a 38 percent wage increase, a $12,000 signing bonus, and improved employer contributions to a 401(k) retirement plan. Additionally, measures have been taken to help manage healthcare costs. However, it is important to note that the contract does not restore Boeing's previous pension plan, a point of disappointment for some older employees.

Union leader Jon Holden characterized the deal as a victory for workers, emphasizing their determination to compensate for many years of stagnant wage growth resulting from past negotiations that had frustrated many union members. "Now it's our job to get back to work and start building the airplanes," said Holden during a press conference. He also described the new contract as a step towards correcting the disparities favoring the middle class.

Boeing CEO Kelly Ortberg welcomed the union's ratification, expressing hope that management and workers can collaborate more effectively. He remarked that progressing requires listening to each other and working together, acknowledging the hard work ahead to restore Boeing's status as a leading company in aviation.

The news of the contract was also positively received by President Joe Biden, who praised the wage increase and enhancements that would help workers retire with dignity. Biden remarked that good contracts benefit not only workers but also businesses and consumers, and are essential for growing the economy.

Boeing employees are expected to return to work starting from November 6, with all workers required back on the job by November 12, as per announcements from the IAM.

The strike had worsened Boeing's already troubled situation. Earlier this year, a serious incident involving a mid-flight failure of a fuselage panel on a 737 MAX plane raised safety concerns, stirring memories of previous tragic accidents with the MAX model that had led to production restrictions.

In March, the company saw a management overhaul, replacing CEO Dave Calhoun with Kelly Ortberg in August. Ortberg has cautioned that recovering the company's stature will take time due to various issues, including budget challenges with defense contracts and complications in their space missions.

The IAM strike was particularly impactful; it became the most expensive strike of the 21st century, surpassing the 2023 United Auto Workers strike, with estimated economic losses reaching $11.6 billion.

As the union ratified the contract, experts suggested it could pave the way for a better future. Jo-Ellen Pozner, a business professor, noted that rejecting another proposal could have led to even deeper troubles for Boeing, making this agreement a significant step forward.

This strike was fueled by ongoing frustration among workers due to years of limited wage growth, worsened by recent inflation and high living costs particularly in the Seattle area, which is rapidly evolving into a technology hub.

Boeing, Union, Contract