Boeing workers have voted to end a seven-week strike after accepting a new wage offer that includes a 38% pay increase over the next four years. The agreement, approved by 59% of International Association of Machinists and Aerospace Workers (IAM) union members, also includes a one-time bonus of $12,000.
The strike, which began on September 13, involved approximately 33,000 Boeing workers across the West Coast. Workers went on strike calling for higher wages, greater job security and the restoration of the traditional pension plan, which had been frozen in 2014. Union members argued that compensation and benefits had not kept pace with rising productivity and inflation.
The workers rejected two offers from Boeing before finally accepting this third proposal, albeit without the reinstatement of the pension they had asked for.
The work stoppage has led to a significant slowdown in production, delaying deliveries of Boeing’s commercial jets and costing the company about $100 million a day. To help stabilize its finances, Boeing raised $24 billion last week, aiming to shore up cash flow amid daily losses and protect 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 end of the strike, workers are expected to return to work in phases, starting 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 need 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 deliveries of new planes to airlines and causing logistical delays.
As one of the largest exporters in the United States, Boeing’s return to production is expected to benefit various industries related to its operations.