Boeing workers have voted to end a seven-week strike after accepting a new pay offer that includes a 38% wage increase over the next four years. The agreement, approved by 59% of union members from the International Association of Machinists and Aerospace Workers (IAM), also provides a one-off US$12,000 bonus.
The strike, which began on 13 September, involved around 33,000 Boeing workers across the West Coast. Workers went on strike citing demands for higher wages, improved job security, and the reinstatement of the traditional pension plan, which was frozen in 2014. Union members argued that compensation and benefits had not kept pace with increased productivity and inflation.
Workers rejected two offers from Boeing before ultimately accepting this third proposal, though without the pension reinstatement they had sought.
The work stoppage led to a significant production slowdown, delaying deliveries of Boeing’s commercial jets and reportedly costing the company around US$100m per day. To help stabilise its finances, Boeing raised US$24bn last week, aimed at supporting cash flow amid the daily losses and protecting its credit rating. Boeing CEO Kelly Ortberg, who took over just weeks before the strike began, expressed hope to “reset” relations with the union and acknowledged the challenges ahead.
With the strike now over, workers are expected to return to their jobs in phases, beginning as early as Wednesday and continuing until mid-November. However, it may take several weeks for Boeing’s production to fully recover, as some workers will require retraining to meet production standards.
The strike impacted not only Boeing’s revenue but also a network of more than 10,000 suppliers spread across all 50 states, temporarily halting the delivery of new planes to airlines and causing logistical delays.
As one of the US’s largest exporters, Boeing’s return to production is anticipated to benefit various industries connected to its operations.
