Boeing workers vote in favor of new contract and end strike of more than 7 weeks

Boeing’s unionized machinists voted Monday to accept a contract offer and end their strike after more than seven weeks, clearing the way for the aerospace giant to resume production of its best-selling plane and generate much-needed cash. .

District leaders of the International Association of Machinists and Aerospace Workers in Seattle said 59% of members who participated in the vote agreed to approve the company’s fourth formal offer, the third put to a vote.

The agreement includes salary increases of 38% over four years and ratification and productivity bonuses.

However, Boeing refused to meet the strikers’ demand to restore a company pension plan that was frozen nearly a decade ago.

Contract ratification on the eve of U.S. presidential election day paves the way for a major manufacturer and government contractor to restart Northwest assembly lines that the strike had paralyzed for 53 days.

Bank of America analysts estimated last month that Boeing was losing about $50 million a day during the now-ended strike, which did not affect a nonunion plant in South Carolina that makes the 787.

Boeing CEO Kelly Ortberg said in a message to employees that he was glad to have reached an agreement.

“Although the last few months have been difficult for all of us, we are all part of the same team,” Ortberg said. “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.”

According to the union, the 33,000 workers it represents could return to work between Wednesday and November 12. Ortberg has said resuming production could take “a couple of weeks,” in part because some may need retraining.

The average annual salary for Boeing machinists is currently $75,608, and with the new contract it will reach $119,309, according to the company. The union indicated that the cumulative value of the promised salary increase would represent an increase of more than 43% over the life of the agreement.

President Joe Biden congratulated machinists and Boeing for reaching an agreement that he said supports workplace equity and improves workers’ ability to retire with dignity. The contract is important for Boeing’s future as a “critical part of the country’s aerospace sector,” he added.

Acting Labor Secretary Julie Su intervened several times in the negotiations, including when Boeing made its latest offer last week.

The continuation of the strike would have plunged Boeing into greater financial danger and uncertainty. Last month, Ortberg announced plans to lay off about 17,000 people and sell shares to prevent the company’s credit rating from being downgraded to junk.

The strike began on September 13 with an overwhelming 94.6% rejection of the company’s offer to increase wages by 25% over four years, which was a far cry from the initial demand of 40% over three years.

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