Boeing union approves contract, ending 7-week strike
A Boeing sign is pictured outside the Renton Production Facility one day before striking union members will vote on a new contract offer in Renton, Washington on November 3, 2024. (AFP Photo)
After more than seven weeks of strikes, the International Association of Machinists and Aerospace Workers (IAM) District 751 announced Monday that its members had approved Boeing’s third contract proposal.
The contract, ratified by 59% of the union members, followed two previously rejected offers. This development will bring around 33,000 workers back to Boeing’s Seattle-area assembly plants, resuming production operations.
Striking workers to return as Boeing faces financial strain
The work stoppage, which began in mid-September, significantly impacted Boeing’s productivity during a challenging period marked by quality and safety issues. The new contract includes a 38% wage increase over four years, a notable rise from the 35% and 25% increases in earlier proposals.
Workers will also have the option to use the $5,000 initially set for retirement matching as part of their ratification bonus.
Boeing’s CEO acknowledges challenges amid workforce discontent
Boeing reported a loss of $6.1 billion in its third-quarter earnings, a figure influenced by the prolonged strike. CEO Kelly Ortberg, addressing the report, noted, “The trust in our company has eroded,” emphasizing the need to mend relationships with employees and manage company debt.
The strike’s impact was also evident in the U.S. jobs report, which recorded a decline of 44,000 transportation jobs, largely attributable to Boeing.
Catch-up on Boeing’s workforce issues
The previous labor contract expired in September, covering most of the 33,000 machinists involved in Boeing’s jet production. The strike’s effect was profound, prompting Boeing to announce a 10% workforce reduction – about 17,000 jobs – and delay the launch of its 777X jet until 2026.
