After seven weeks of a high-stakes labor standoff, Boeing machinists reached a major breakthrough as they voted to accept a new contract, effectively ending their strike. In a vote cast on Monday, around 59% of machinists decided in favor of the proposed contract. This vote allows the 33,000 workers represented by the International Association of Machinists and Aerospace Workers to return to their jobs at Boeing facilities across Washington, Oregon, and California. They can begin as early as November 6, with a mandatory return date by November 12.
Boeing CEO Kelly Ortberg acknowledged the challenges of recent months in a message to employees, emphasizing a commitment to teamwork. “While the past few months have been difficult for all of us, we are all part of the same team,” Ortberg wrote. He stressed the importance of working together to restore Boeing’s reputation as an industry icon. The agreement represents the union’s third negotiation attempt with Boeing after members previously rejected two offers. In a public statement, union leaders expressed that this offer was the best opportunity to secure gains and urged members to recognize the achievement of a hard-won deal.
New Contract Brings Increased Compensation and Bonuses
The new contract includes substantial financial benefits, addressing workers’ demands for higher pay. The contract guarantees a 38% raise over four years, which improves upon a previous offer of a 35% cumulative raise that workers had overwhelmingly rejected just weeks prior. Although the union initially sought a 40% pay increase, the union leadership described the latest offer as a significant step forward for members. Additionally, each worker will receive a $12,000 ratification bonus if the union approves the agreement.
The deal also enhances Boeing’s 401(k) contributions, yet it does not reinstate a defined pension plan, which the workers lost under a 2014 contract. The absence of a pension remains a point of disappointment for many members. However, union leaders advised members to embrace the contract, suggesting it would pave the way for stronger bargaining positions in future negotiations. “Allow yourself to capture this win and be proud of your sacrifice,” Jon Holden, president of IAM, said in a public letter to members. President Joe Biden also praised the contract, highlighting collective bargaining’s role in building a fairer economy and delivering better outcomes for workers, businesses, and consumers.
Financial Impact and Future Outlook for Boeing and Its Workers
The strike took a toll on both Boeing machinists and its workforce. Workers, who received a reduced weekly stipend of $250 from a strike fund, faced significant financial strain over the seven-week period. For Boeing, the standoff led to an estimated $5.5 billion loss, based on a recent analysis by the Anderson Economic Group. The company’s stock had dropped by 40% this year, though it showed minor improvement as negotiations progressed.
Despite these financial setbacks, both sides now look to move forward. Boeing’s CEO emphasized the importance of unity, encouraging employees to refocus on delivering top-quality aircraft. In his closing remarks to the workforce, Ortberg stated, “It’s time we all come back together and focus on rebuilding the business and delivering the world’s best airplanes.” Union leaders, too, expressed confidence in the deal, underlining that the decision ultimately belonged to the workers. As Boeing machinists return to the assembly lines, the agreement marks a pivotal moment in their labor history and a step toward renewed collaboration within the company.
