Boeing workers agree to new contract and end strike

Tens of thousands of Boeing machinists on strike vote on Monday, which approved the contract proposal and completed their work stoppage in seven weeks.

Boeing machinists voted 59% to accept the contract and end the strike.

“While the past few months have been difficult for all of us, we are all part of the same team,” Boeing CEO Kelly Ortberg said in a message to employees. “We will only move forward by listening and working together. There is still a lot of work ahead to return to the excellence that has made Boeing an iconic company.”

Workers can return to work as early as the first shift on November 6th, but will be required to return to work by November 12th.

The new proposal includes higher wage increases and an enhanced ratification bonus that would pay each worker $12,000 if the union approves the deal, according to a union statement. International Association of Machinists and Aerospace Workersthe union representing 33,000 Boeing workers in Washington, Oregon and California.

President Joe Biden released a statement after the vote was announced, saying: “Over the last four years, we have shown that collective bargaining works. Good contracts benefit workers, businesses and consumers—and are key to growing the American economy from the middle.” outward and from bottom to top.”

The ongoing standoff has drained the finances of both sides. Union members received $250 a week from the strike fund beginning in the third week of the work stoppage. This compensation means a major pay cut for many employees.

Boeing and its shareholders have lost about $5.5 billion since the strike began in September, Boeing estimates last month. Anderson Economic Group. Boeing shares are down 40% this year but have risen slightly over the past month.

Union members are loud defeated two previous offers from Boeing, but the latest offer represents the best deal the workforce is likely to get, the union said in a public letter to its members on Saturday.

“This is really a time to build on these gains and work to do better in future negotiations,” IAM President John Holden and the union’s negotiating committee. said members. “Allow yourself to win this victory and be proud of your sacrifice.”

The proposed contract would provide a 38% raise over the four-year term of the contract, up from the 35% cumulative raise provided in the previous proposal that workers overwhelmingly rejected in a vote two weeks ago. Initially, workers demanded a 40% increase in total wages.

The proposal also calls for increasing Boeing’s 401(k) plan contributions, but it refuses to comply with workers’ calls to restore the company’s defined pension benefits. Workers lost a traditional pension plan under a contract ratified by the union in 2014.

Nearly two-thirds of union members rejected the latest contract proposal in a vote last month. The result was stunning defeat previous proposal in September, which was condemned by more than 90% of union members.

“It’s time for us all to come together and focus on rebuilding the business and building the world’s best airplanes,” Boeing CEO Kelly Ortberg wrote in an interview. memo for employees on Friday. “A lot of people depend on us.”

“The decision to end this strike is exactly where it belongs—in the hands of the members,” Holden and the negotiating committee said in their public letter.