Boeing workers approve labor contract, ending a bruising 7-week strike

Unionized Boeing workers voted to accept a contract proposal after a seven-week strike.

Boeing union workers approved a labor contract proposal on Monday that will increase pay by 38% over four years and end a seven-week strike.

According to the International Association of Machinists and Aerospace Workers Local 751, 59% of employees voted yes to the proposal. This was after Boeing union leaders endorsed the offer on Thursday.

When approached for comment, the IAM pointed B-17 to a statement it issued on Monday night.

“This contract also creates a new foundation to build on for the future and that future begins today,” Jon Holden and Brandon Bryant, presidents of IAM districts 751 and W24 respectively, said in a joint statement on Monday.

“We are ready to help Boeing change direction and return to building the highest quality and safest airplanes in the world,” the statement added.

The win, which also includes a $12,000 ratification bonus, comes after Boeing machinists shot down two other offers since September 13.

The first was when over 30,000 union workers voted to strike after being displeased with the 25% pay increase they were originally offered.

The second rejection was in late October. It included a 35% pay hike and a $7,000 bonus. Still, workers will not get a highly-demanded pension plan that was taken away a decade ago.

This was Boeing’s fourth offer overall. The company’s second offer with a 30% pay increase was withdrawn after talks broke down.

“This agreement represents a new standard in the aerospace industry — one that sends a clear statement that aerospace jobs must be middle class careers in which workers can thrive,” Brian Bryant, IAM’s international president, said in a statement on Monday.

The win for Boeing means it can restart its production line as airlines continue to complain about delayed deliveries.

New Boeing CEO Kelly Ortberg, who started in August, can also fully implement his culture turnaround plan as union factory employees return to work.

“While the past few months have been difficult for all of us, we are all part of the same team,” Ortberg said in a message to Boeing employees on Monday seen by B-17.

“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,” he added.

According to a Bank of America analyst estimate, Boeing lost about $50 million a day due to the strike.

The strike also led to an announced 10% staff cut, a further delay to Boeing’s 777X program, and a halt in much of Boeing’s production in Seattle.

This has snowballed the problems at the already embattled planemaker, which started with a door plug blowing off a new 737 Max in January. That was followed by a safety audit, a CEO change, and at least three whistleblowers who reported quality concerns on the assembly lines.