Boeing's workers have voted in favor of a new contract, effectively concluding a seven-week strike that significantly impacted the company and its financial health.
Boeing Workers Approve New Contract, Ending Lengthy Strike
Boeing Workers Approve New Contract, Ending Lengthy Strike
Agreement Includes 38% Pay Raise and Bonuses Amid Financial Struggles
Boeing workers have officially ended a prolonged strike, approving a new contract that promises a 38% wage increase over the next four years. The International Association of Machinists and Aerospace Workers (IAM) reported that around 30,000 employees initiated the strike on September 13, which severely disrupted production at Boeing's factories. With 59% of those voting in favor, employees are set to return to work as soon as Wednesday, or by November 12 at the latest.
The newly ratified agreement includes a one-time bonus of $12,000 and improvements to retirement plans for the workers. IAM leader Jon Holden praised the resolution as a significant victory for fair treatment and respect in the workplace. Boeing's CEO, Kelly Ortberg, acknowledged the challenges ahead in restoring the company's legacy of excellence.
The strike drew considerable attention from the government, with acting U.S. Labor Secretary Julie Su actively participating in negotiations, highlighting the importance of Boeing as a vital player in the U.S. economy. The strike had far-reaching ramifications, with estimates suggesting it cost the company nearly $10 billion. Boeing also revealed substantial financial losses, reporting $4 billion in operational losses within its commercial aircraft division during the last quarter. Consequently, the firm began a share sale initiative aimed at raising over $20 billion, as it faced potential credit rating downgrades.
Further complicating matters, Boeing announced plans to lay off approximately 17,000 workers, beginning in mid-November, following an ongoing financial crisis exacerbated by a notable mid-air incident earlier this year. The company's space division has also faced setbacks, compounded by a recent failure of its Starliner vessel to complete a mission with astronauts on board.
The newly ratified agreement includes a one-time bonus of $12,000 and improvements to retirement plans for the workers. IAM leader Jon Holden praised the resolution as a significant victory for fair treatment and respect in the workplace. Boeing's CEO, Kelly Ortberg, acknowledged the challenges ahead in restoring the company's legacy of excellence.
The strike drew considerable attention from the government, with acting U.S. Labor Secretary Julie Su actively participating in negotiations, highlighting the importance of Boeing as a vital player in the U.S. economy. The strike had far-reaching ramifications, with estimates suggesting it cost the company nearly $10 billion. Boeing also revealed substantial financial losses, reporting $4 billion in operational losses within its commercial aircraft division during the last quarter. Consequently, the firm began a share sale initiative aimed at raising over $20 billion, as it faced potential credit rating downgrades.
Further complicating matters, Boeing announced plans to lay off approximately 17,000 workers, beginning in mid-November, following an ongoing financial crisis exacerbated by a notable mid-air incident earlier this year. The company's space division has also faced setbacks, compounded by a recent failure of its Starliner vessel to complete a mission with astronauts on board.
