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By Letara Draghia •
Updated: 05 Nov 2024 • 10:32 • 2 minutes read
In a recent vote, around 59 per cent of the striking workers from Boeing’s US West Coast factories approved the new contract, which promises a substantial 38 per cent pay raise over four years. The agreement is reported to include a one-time bonus of $12,000 €11,000) for each union member, as well as enhanced retirement plan contributions.
Boeing workers strike
The walkout, which began on September 13, involved approximately 33,000 machinists who work on Boeing’s popular 737 Max, 767, and 777 aircraft models. This first major strike in 16 years has highlighted workers’ frustrations over previous agreements that did not meet inflation and cost-of-living demands in the Seattle area. Jon Holden, Lead Negotiator for the International Association of Machinists and Aerospace Workers (IAM) said during a press conference, “This is a victory. We can hold our heads high.”
Financial struggles and slow production at Boeing
Boeing’s CEO Kelly Ortberg expressed relief at the end of the strike, noting, “While the past few months have been difficult for all of us, we are all part of the same team.”
Boeing’s revenue has taken a significant hit, with estimates indicating daily losses around $100 million (€92 million). In an effort to mitigate these impacts and preserve its credit rating, Boeing raised $24 billion (€22 billion) from investors last week, as reported by The Guardian.
Despite the resolution, Boeing’s production lines face a slow recovery, especially for the 737 Max, which will take time to ramp up to the pre-strike target of 38 units per month. The disruption has also impacted Boeing’s plans to lay off around 17,000 workers in the coming months, with redundancy notices expected to be issued from mid-November.
Boeing workers’ new contracts
The new contract addresses several of the workers’ primary concerns, including wages and retirement benefits. Although the union initially demanded a 40 per cent pay rise, workers were satisfied that the combined pay raise, bonuses, and retirement contributions met their goals. Holden pointed out that Boeing had also committed to building its next aircraft in the Seattle area, reassuring workers of future job stability.
Boeing’s pay increases will add approximately $1.1 billion (€1 billion) to wage expenses over the four-year period, according to analysts at Jefferies.
In a report by The Guardian, more than 26,000 union members were said to have participated in the vote, with turnout nearing 80 per cent. Many workers voiced long-standing grievances about Boeing’s previous contracts, explaining the earlier rejections.
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