Boeing workers have voted to accept the aviation giant’s latest pay offer, ending a damaging seven-week-long walkout that affected the company’s production.
The agreement took into account after the International Association of Machinists and Aerospace Workers (IAM), who have a large membership base, approved the new proposal, with 59% voting yes to proposals put in the new contract that would guarantee a 38% pay increase within the next four years, a one-off bonus payment of $12,000, and an improvement of retirement plans to go with the agreement.
The strike, which started on September 13, 2024, with around 30,000 union workers taking part, has caused big slowdowns at Boeing’s factories, especially hitting the production of the 737 Max and 777 planes. This walkout made it even harder for the company, which has faced significant financial setbacks this year.
Union leaders expressed relief at the outcome, saying that the new contract is a hard-fought win for workers who had turned down two other offers from Boeing before. Jon Holden, the head negotiator for IAM, called the vote a big triumph and stressed how important it is for workers to stick together.
Read Also: Boeing Workers Strike, Demand Better Pay
Striking workers can start returning to their jobs as early as November 6, 2024, with a deadline for all to return by November 12, 2024. However, a few employees might need to retrain because they have been away from the production lines for a while.
The strike has reportedly cost Boeing nearly $10 billion in lost revenue, which prompted the company to secure $24 billion from investors last week to keep its credit rating from dropping. This financial pressure has pushed Boeing to announce plans to cut about 17,000 jobs as part of their ongoing restructuring moves.
As the new contract doesn’t bring back the defined-benefit pension plan that got frozen nearly ten years ago, it does improve the matching contributions for employees’ 401(k) plans. The average yearly salary for machinists is expected to jump from $75,608 to $119,309 over the course of the contract.
