Boeing Workers Ratify New Deal Ending Seven-Week Strike

In a decisive vote, Boeing workers have accepted a new pay deal, ending a protracted strike that severely impacted the company's operations.

After a challenging seven-week strike, Boeing workers have approved a new contract that offers a substantial 38% pay increase over the next four years. The International Association of Machinists and Aerospace Workers (IAM) announced that approximately 30,000 workers, who began their walkout on September 13, are now free to resume their positions as early as this Wednesday, with a deadline for returning by November 12.

IAM members supported the contract with a 59% majority, which also includes a one-time bonus of $12,000 and revisions to retirement provisions. Union leader Jon Holden remarked, "Through this victory and the strike that made it possible, IAM members have taken a stand for respect and fair wages in the workplace."

Despite a previous demand for a 40% salary increase and two rejected offers, workers decided to accept this latest agreement. Boeing’s CEO, Kelly Ortberg, acknowledged the difficulties faced during the strike, emphasizing unity as they work towards restoring the company's famed excellence.

Highlighting the strike's serious implications, acting US Labor Secretary Julie Su traveled to Seattle to mediate the negotiations, underscoring the issue's significance to the White House. The strike's long duration has caused Boeing nearly $10 billion in losses, according to economic analysts. Its commercial aircraft sector reported $4 billion in operating losses for the last quarter, prompting the company to seek over $20 billion through a share sale to stabilize its finances.

Amid these challenges, Boeing announced layoffs affecting about 17,000 workers, with notifications expected by mid-November. This crisis follows a series of setbacks for the company, including a mid-air incident involving one of its planes and issues with its Starliner spacecraft, further complicating its recovery trajectory.