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Boeing Strike Ends As Machinists Accept New Contract

2025年01月01日 02:15:37
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(RTTNews) - Nearly two months long strike at Boeing Co. has ended after a majority of around 33,000 frontline workers voted to approve a new contract that will deliver 43.65 percent compounded wage increase.

Following the deal, Boeing shares were gaining around 1.91 percent in the pre-market activity on the NYSE to trade at $158.50.

While announcing the news at its website, Boeing President and CEO Kelly Ortberg said, "While the past few months have been difficult for all of us, we are all part of the same team. We will only move forward by listening and working together. There is much work ahead to return to the excellence that made Boeing an iconic company."

As per the aerospace giant, employees may return to work beginning at the start of the first shift on November 6 and must return by the beginning of their shift on November 12.

The machinists, part of the International Association of Machinists and Aerospace Workers or IAM District 751 and W24, voted to ratify the new union contract, which the union said has instantly set a new standard for compensation and wages for aerospace industry workers.

The union members in Washington State, Oregon and California had walked off the job on September 13, demanding better wages and working conditions. The strike had halted mainly the production of Boeing's 737 MAX jets, as well as 767 and 777 widebody planes.

The new offer is the company's fourth one, while all previous three offers were rejected by the striking union members.

IAM now said that its members voted by 59 percent to approve the deal.

In a statement, IAM noted that acting U.S. Secretary of Labor Julie Su, in recent weeks, worked on behalf of the Biden-Harris administration to help restart and reach a positive resolution to negotiations that had previously stalled.

The company's new contract includes a 43.65 percent compounded wage increase, and 38 percent before compounding, over the four-year life of the contract.

Further, a $12,000 ratification bonus combines the previous $7,000 ratification bonus and the $5,000 lump sum into the 401(k). Now, union members can choose how this total amount is received, whether in their paycheck, contribution to 401(k), or a combination of both.

IAM Western Territory General Vice President Gary Allen said, "For many frontline Boeing workers in the IAM Union, the terms of this contract will be life-changing. It's the most significant upgrade we've had to our collective bargaining agreement in a decade - and it will prove to be an example for the rest of the industry to live up to. Their strike was a great example of workers standing up for not just themselves, but also their families and communities."

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