Boeing machinists have ended a seven-week strike by agreeing a new labor contract promising a 38 percent wage increase over the next four years.
The approval, with 59 percent in favor, will bring great relief to Boeing. It marks a significant victory for the machinists, who had stopped aircraft production in their fight for fairer wages amid rising living costs.
The New Contract and Key Provisions
The new contract will see machinists receive a cumulative 38 percent wage increase, starting with an initial 13 percent raise.
Boeing has also enhanced 401(k) contributions and offered a signing bonus. Machinists can now choose between a $12,000 bonus or a combination of a $7,000 bonus and a $5,000 401(k) deposit.
By the end of the contract, average machinist pay is projected to reach $119,309. This is a move aimed at addressing the challenges posed by Seattle’s high cost of living.
The contract marks the third proposal voted on by the machinists since their strike began in September.
Previous offers, including one with a 25 percent raise, failed to meet the union’s demands.
The latest offer reached what union leaders described as “the best possible outcome.”
Union Urges Workers to Accept
John Holden, President of the International Association of Machinists and Aerospace Workers District 751, said:
“This is a victory. We can hold our heads high.”
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Relief for Boeing’s Leadership and Production Goals
The end of the strike comes as a relief to Boeing’s CEO Kelly Ortberg.
Ortberg took office in August with a mandate to address production and safety challenges at the aerospace giant.
The halt in production over the past seven weeks has affected output. There have been delays in the manufacturing of popular aircraft models like the 737 Max, 777, and 767.
With workers set to return as early as Wednesday, Boeing aims to restore production lines and meet its delivery schedules.
President Joe Biden commended the deal, highlighting its importance for both Boeing’s workforce and the broader U.S. aerospace sector.
Acting Labor Secretary Julie Su engaged with both sides to facilitate negotiations.
Biden said:
“This contract provides a 38 percent wage increase over four years, improves workers’ ability to retire with dignity, and supports fairness at the workplace.”
A Win for Labor Amid Rising Living Costs
The deal is particularly significant for workers in Seattle, where escalating living expenses have amplified concerns over wage stagnation.
By securing higher wages and enhanced benefits, Boeing machinists have set a strong precedent for labor negotiations within the aerospace industry, underscoring the importance of fair compensation as production demands intensify.
