Boeing Strike Concludes with Significant Pay Rise for Workers

Boeing employees have successfully voted to accept a new contract that offers a substantial pay rise, concluding a labor dispute that significantly impacted operations at the aviation manufacturer.

Boeing's workers have finally reached an agreement with the company, bringing an end to a seven-week-long strike that saw around 30,000 employees walking off the job. The International Association of Machinists and Aerospace Workers (IAM) announced that workers had approved a new contract which includes a remarkable 38% pay increase over the next four years. Striking workers are expected to begin returning to their posts as early as Wednesday or no later than November 12.

The strike commenced on September 13, causing a considerable slowdown in production and exacerbating existing challenges within the company. IAM representatives reported that 59% of the striking workers favored the new deal, which also encompasses a one-time bonus of $12,000 (£9,300) and revisions to retirement benefits. IAM leader Jon Holden expressed pride in the outcome, emphasizing the victory for fair wages and respect in the workplace.

Boeing's CEO, Kelly Ortberg, acknowledged the difficulties but reaffirmed the unity of purpose going forward, stating, "While the past few months have been difficult for all of us, we are all part of the same team." The federal government took an active interest in the negotiations, with Acting US Labor Secretary Julie Su traveling to Seattle to facilitate discussions.

The strike has cost Boeing nearly $10 billion, an amount underscored by the company’s reported $4 billion loss in operating income for its commercial aircraft sector in the third quarter. To mitigate its financial woes, Boeing recently initiated a plan to raise over $20 billion through a share sale. Concerns grew regarding potential downgrades to Boeing’s credit rating should the strike persist, resulting in more expensive borrowing.

In a bid to stabilize its workforce, Boeing announced plans to lay off about 17,000 employees, with notifications slated for mid-November. Recent operational issues, including a mid-air incident involving a passenger plane and setbacks with its Starliner space mission, have added to the strain faced by the manufacturer, a vital player in the aerospace industry.