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    Boeing factory workers vote to approve the latest contract offer and end the seven-week strike

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    Topline

    Boeing’s striking factory workers voted to accept the company’s revised contract offer – which promised a bigger raise and bonus payments – and end a seven-week work stoppage, paving the way for the crisis-hit company to restart production lines for its main aircraft. .

    Key facts

    In an update on social media, the International Association of Machinists and Aerospace Workers (IAM) union, which represents striking workers, said 59% of its members voted in favor of the new contract offer.

    The striking drivers can return to work as early as Wednesday in the first shift or no later than November 12, which is next Tuesday, the statement said.

    Jon Holden, the local president of the IAM union, said the new contract was a “victory”, adding: “We all stood strong and we achieved something we had not achieved in the last 22 years.”

    Holden said their job now was to “get back to work and start building the planes, increase rates and bring this company back to financial success.”

    The contract offer ratified by the striking workers includes a 38% pay increase over four years and a combined cash bonus of $12,000 – including a $7,000 ratification bonus and a $5,000 contribution to their 401(k) accounts.

    Boeing CEO Kelly Ortberg said the company was “pleased to reach a ratified agreement” with the union, adding: “There is still much work to do to return to the excellence that made Boeing an iconic company.”

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    Crucial quote

    President Joe Biden congratulated the union on securing the deal, saying, “Over the past four years, we have shown that collective bargaining works. Good contracts benefit workers, businesses and consumers – and are critical to growing the American economy from the bottom up and from the bottom up.”

    Big number

    33,000. That’s the number of Boeing factory workers from the Pacific Northwest region who participated in the strike.

    Important background

    The end of the seven-week strike is much-needed good news for Boeing at a time when the aircraft manufacturer is facing multiple crises. The work stoppage stalemate seriously hampered production of key Boeing aircraft, including the best-selling 737 MAX, the 767 and the 777. Last month, the company announced its financial results for the third quarter of 2024, reporting a loss of $6.1 billion. Announcing the results, company CEO Kelly Ortberg called for a “fundamental culture change at the company.” To boost its cash reserves and avoid a credit rating downgrade, the company last month made a stock offering to raise $21.1 billion. Boeing is also facing strict scrutiny over its manufacturing practices and safety standards after a series of incidents involving its planes in recent years. Earlier this year, a door plug on an Alaska Airlines Boeing 737 Max 9 plane exploded shortly after takeoff, leading to an emergency landing. The incident prompted the FAA to ground more than 171 Boeing 737 Max 9s and prevented the company from expanding production of its best-selling planes.

    Read more

    Boeing and striking workers resume talks a week after the union voted to reject the contract offer (Forbes)

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