Boeing workers accepted the pay offer, ending a seven-week strike significantly slowing production. Under the new contract, Boeing workers will receive a 38% pay raise over four years, a one-time $12,000 bonus, and changes to retirement plans.
The International Association of Machinists and Aerospace Workers (IAM) confirmed that 59% of members voted to accept Boeing’s offer. As a result, striking workers will return to their jobs as early as Wednesday or as late as November 12. The IAM highlighted this victory as a “stand for respect and fair wages in the workplace.”
The seven-week strike, involving around 30,000 workers, began on September 13. It triggered a significant slowdown across Boeing’s factories, adding strain to a company already grappling with financial and operational issues. Boeing had previously offered lower pay increases, which workers rejected twice.
Boeing’s CEO, Kelly Ortberg, acknowledged the challenges of the past months but emphasized the need to restore Boeing’s reputation. “We are all part of the same team,” Ortberg said. “There is much work ahead to return to the excellence that made Boeing iconic.”
The strike gained national attention, with acting U.S. Labor Secretary Julie Su traveling to Seattle in October to aid negotiations. According to Anderson Economic Group, the high-profile strike reportedly cost Boeing nearly $10 billion. In response, Boeing reported losses of $4 billion for its commercial aircraft sector in the third quarter.
Boeing recently launched a $20 billion share sale to address its financial struggles. The move came amid warnings that the strike’s extension could lead to credit rating downgrades, increasing the company’s borrowing costs. Boeing also announced plans to lay off around 17,000 employees, with initial notices expected by mid-November.
The crisis impacting Boeing has extended beyond labor disputes. In January, a piece of one of its passenger planes suffered a mid-air blowout. Boeing’s space division also faced reputational damage after its Starliner vessel returned to Earth without astronauts. Despite these challenges, Boeing workers accepted a pay offer as part of a new contract to address ongoing issues within the company.
