Seattle, WA — After more than seven weeks on the picket lines, Boeing factory workers have voted to accept a new contract proposal, officially ending the strike that halted production at one of America’s largest aerospace manufacturers. The agreement was reached with 59% of the voting members of the International Association of Machinists and Aerospace Workers (IAM) approving Boeing’s latest offer.
This new contract includes a substantial 38% wage increase spread over four years, along with ratification and productivity bonuses, addressing some of the key concerns that had fueled the 53-day walkout. Despite these gains, the union did not secure one of its primary demands—the restoration of a frozen company pension plan, which has been a significant point of contention.
The end of the strike means Boeing can resume production on its bestselling airliners, a crucial step for the company as it seeks to recover from financial strains exacerbated by the stoppage. Analysts from Bank of America have estimated that Boeing was losing approximately $50 million a day during the strike, highlighting the urgent need for a resolution.
Boeing CEO Kelly Ortberg expressed relief over reaching an agreement, emphasizing the importance of unity and collaboration moving forward. “While the past few months have been difficult for all of us, we are all part of the same team,” Ortberg stated. “There is much work ahead to return to the excellence that made Boeing an iconic company.”
The ratification came just in time, as workers can return to their positions as early as Wednesday, with some possibly needing retraining before production can fully ramp up again. This staggered return will help Boeing tackle the backlog of orders that have piled up during the strike.
President Joe Biden and other political figures have lauded the resolution of the strike, noting its significance for the U.S. aerospace sector and the broader manufacturing landscape. The resolution not only stabilizes Boeing’s operational capabilities but also signals potential shifts in labor relations within the industry.
As Boeing workers prepare to return to their roles, the company faces the challenge of mending internal divisions and boosting morale among a workforce that remains partly dissatisfied. The coming weeks will be crucial as Boeing strives to increase production and restore its reputation amidst ongoing challenges in the aerospace industry.
