Boeing Strike Nears End as Company and Union Reach Agreement
After almost seven weeks of a crippling strike, Boeing and its machinists’ union have finally reached a new negotiated offer that could potentially bring an end to the ongoing labor dispute. The agreement comes after multiple rounds of negotiations and rejected proposals, with a vote on the new contract set for Monday.
The strike began on September 13 when more than 32,000 machinists, primarily based in the Seattle area, walked off the job after turning down a tentative agreement. The workers were pushing for higher compensation, citing the rising cost of living in the region where tech giants like Microsoft and Amazon have driven up prices.
The new proposal includes a significant 38% general wage increase over four years, up from the previous offer of 35%. This brings the total compounding pay increases to close to 44%. Additionally, workers will have the option of a $12,000 one-time ratification bonus or a combination of a $7,000 ratification bonus and a $5,000 401(k) contribution. At the end of the contract, average machinist pay will average $119,309.
In a statement, the International Association of Machinists and Aerospace Workers District 751 urged its members to approve the contract, stating that they had achieved significant success through the strike and risked receiving a lesser offer if they continued to hold out.
Boeing expressed optimism about the agreement, encouraging all employees to learn more about the improved offer and vote on Monday. CEO Kelly Ortberg emphasized the company’s commitment to finding a solution that meets both the company’s needs and the employees’ demands.
The strike has had a significant impact on Boeing, which has been grappling with production flaws and safety issues, including a door plug incident on a Boeing 737 Max 9 earlier in the year. The company reported a loss of more than $6 billion in the last quarter and warned of continued cash burn through 2025.
The resolution of the strike is expected to have broader implications for the aerospace industry and could potentially impact Friday’s U.S. jobs report. As both sides work towards a final agreement, the outcome of the vote on Monday will be closely watched by industry analysts and stakeholders for its potential to shape the future of Boeing and its workforce.
