After a prolonged seven-week strike, Boeing workers have voted to accept a new contract offer, bringing an end to the work stoppage that had halted production of most of the company’s passenger planes.
The decision to accept the contract was made by the International Association of Machinists and Aerospace Workers (IAM), which represents 33,000 Boeing workers in Washington, Oregon, and California.
Boeing New Worker Contract Details
The new contract includes a 38% pay increase over four years, a $12,000 ratification bonus, and increased contributions to employee 401(k) plans.
However, the contract does not reinstate the traditional pension plan that was lost in a previous contract ratified in 2014.
The average annual pay for machinists will rise from $75,608 to $119,309 over the life of the contract.
Union leaders had strongly urged members to ratify the latest proposal, emphasizing that it was the best deal the workforce was likely to receive.
IAM President Jon Holden and the union’s negotiating committee stated, “This is truly the time to lock in these gains and work to build more in future negotiations.
Allow yourself to capture this win and be proud of your sacrifice.”
Financial Impact and Company’s Response
The strike had a significant financial impact on both Boeing and its workers.
Boeing and its shareholders lost about $5.5 billion since the strike began in September, and union members received $250 per week from a strike fund starting in the third week of the work stoppage.
The strike also contributed to a 40% drop in Boeing’s stock price this year.
Boeing CEO Kelly Ortberg expressed relief at reaching an agreement and emphasized the importance of moving forward together.
Kelly stated, “It’s time we all come back together and focus on rebuilding the business and delivering the world’s best airplanes. There are a lot of people depending on us.”
The acceptance of the new contract marks the end of a challenging period for both Boeing and its workers.
While the contract does not address all of the union’s demands, it represents a significant step forward in resolving the issues that led to the strike.
The focus now shifts to resuming production and rebuilding the company’s reputation and financial stability.
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