Boeing factory workers assemble Boeing 787 aircraft at the Boeing factory in Everett. (Vince Streano/Getty Images)
The nearly two-month strike by Boeing factory workers that halted aircraft production at factories across the Northwest ended Monday after thousands of union members voted to approve a new contract offer from the aerospace giant.
While the deal will not result in a return to a defined benefit program that many striking workers had hoped to revive, it does include a 38% pay increase over the four years of the contract, bringing the average wage for workers just under would be $120,000 per year. year.
Employees will also receive a $12,000 ratification bonus, a reinstated performance incentive with a guaranteed 4% annual payout, and increased 401(k) contributions from the company.
The average annual wage of operators will increase to $119,309 less than the accepted bid, compared to the average of $75,600 under the previous contract, Boeing said.
As with previous offers, the company provided a guarantee to build its next commercial aircraft model in the Puget Sound region. That promise is good as long as the contract runs. But Boeing has no immediate plans for a new commercial plane and is years behind schedule with its 777X, manufactured in Everett.
Approval of the contract comes after employees rejected two previous offers, one earlier the strike began on September 13 and one on October 23.
Leadership of the International Association of Machinists and Aerospace Workers recommended employees approve the contract offer in the run-up to the elections, which took place on the eve of the presidential elections that demanded the attention of a large part of the country.
The contract offer was approved and 59% of union members voted in favor.
Operators can return to work during the first shift on Wednesday, November 6. They must return at the start of their shift on Tuesday, November 12.
Negotiations became tense at times, with each side accusing the other of negotiating in bad faith. Union leadership was especially in turmoil after Boeing issued a non-negotiated “best and final offer” in late September. That proposal did not get a vote.
Members of Washington’s congressional delegation, business groups and others have urged the two sides to reach an agreement.
The union credited acting Labor Secretary Julie Su with helping with negotiations.
The work stoppage has further damaged Boeing’s already weakened finances. Last week the company raised approximately $21 billion by selling shares to strengthen the balance sheet. This followed a report third-quarter loss of $6.17 billion.
Anderson Economic Group, a Michigan consulting firm, estimated last week that the strike had cost Boeing approximately $5.5 billion in lost revenue.
In October the company said it would lay off about 17,000 employees nationwide and has since indicated those plans wouldn’t change based on the outcome of the vote on the contract.
Boeing has seen high-profile safety failures in recent years.
Problems with the flight control systems of the 737 Max planes led to crashes in 2018 and 2019 that killed 346 people, exposing holes in the company’s safety culture and triggering hundreds of millions of dollars in fines.
And in January, an Alaska Airlines 737 flight was forced to make an emergency landing after a door panel blew off the plane.
Workers fight for higher wages and benefits have pointed out the high remuneration of directors. That’s what critics say too a shift within the company over the yearstowards a tougher stance towards employees and suppliers, while prioritizing share buybacks and dividends to shareholders, led to some of the current problems.
“It’s time for us all to come back together and focus on rebuilding the company and delivering the best aircraft in the world,” Kelly Ortberg, who took over as company CEO in August, said last week when the final contract proposal was released.
“There are many people who depend on us,” he added.
