Boeing and its machinists' union have reached a critical agreement to end a seven-week strike that had halted production at its Seattle-area factories.
This resolution is pivotal for Boeing, which faced mounting financial pressure, losing an estimated $50 million per day. The approved contract provides union members with a 38% wage increase over four years, along with bonuses, although it falls short of restoring the previously frozen company pension plan—a key union demand.
The contract ratification, backed by 59% of union members, enables the 33,000 affected workers to return to their jobs as early as Wednesday, with production resuming over the following weeks as some employees undergo retraining.
The union expects a significant increase in average annual pay, with machinists’ salaries projected to reach $119,309 by the end of the contract term. Additional benefits include a $12,000 ratification bonus and retention of a performance bonus that Boeing had initially aimed to cut.
This strike’s resolution is a relief for Boeing, which faced the possibility of downgraded credit and had announced potential layoffs of around 17,000 employees amid the financial strain.
Union President Jon Holden hailed the agreement as a “victory,” though reactions among workers were mixed.
Some, like lab lead William Gardiner, viewed it positively, while others, such as calibration specialist Eep Bolaño, felt the deal didn’t meet all union demands, reflecting a sentiment of compromise rather than complete victory.
President Biden praised the agreement as a model of workplace fairness, highlighting the benefits for Boeing’s long-term role in the U.S. aerospace sector. The administration had been actively involved, with Acting Labour Secretary Julie Su mediating to help bring about the final offer.
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