Economy

Boeing Workers End Seven-Week Strike with New Contract

Tuesday 05 November 2024 - 08:11

Boeing workers have ended a seven-week strike after approving a new contract offering significant wage increases and bonuses. The International Association of Machinists and Aerospace Workers (IAM) announced that 59% of its members voted to accept the agreement, which will return approximately 33,000 workers to their jobs starting Wednesday.

The strike, which began on September 13, involved intense negotiations and the rejection of two prior offers from Boeing. The newly ratified contract includes a 38% pay raise over four years and a $12,000 one-time bonus. While it does not reinstate the traditional pension plan replaced in 2014, it boosts 401(k) contributions to address union concerns.

IAM chief negotiator Jon Holden praised the contract as a victory, saying, "This is a triumph; you remained resolute, you stood tall, and you achieved victory." Boeing CEO Kelly Ortberg expressed relief at the agreement’s approval and emphasized the importance of teamwork in restoring the company’s reputation and efficiency.

The financial impact of the strike has been substantial, with Boeing reportedly losing about $100 million daily during the work stoppage. Total losses could exceed $6.5 billion, and the broader U.S. economic impact may top $11.5 billion. Boeing recently secured $24 billion from investors to help maintain its credit rating amid ongoing financial strain.

As production resumes, initial output levels for the 737 Max are expected to stay below pre-strike targets, potentially limited to single digits per month—well under the desired 38 aircraft monthly.

The strike’s conclusion marks a pivotal moment for Boeing as it navigates production delays and ongoing safety concerns. The new contract not only stabilizes labor relations but aims to bolster employee morale and productivity during this critical recovery phase.