boeing company Machinists approved a new labor deal on Monday, ending a costly seven-week strike that halted much of the company’s aircraft production and exacerbated its growing situation. loss.
Machinists voted 59% in favor of the new contract, which includes a 38% wage increase over four years and other improvements.
The approval comes as a relief to new Boeing CEO Kelly Ortberg, who Taking the top job in August Guide companies through security and manufacturing crises. Company raising Over $20 billion A share sale was carried out last week to deal with its financial problems after warnings it could happen Burn money By 2025.
Ortberg said last month that Boeing would 10% of 170,000 employees to be laid off including managers, executives and employees in an effort to cut costs, with layoff notices issued in mid-November. He painted a picture of a streamlined Boeing focused on its core commercial and defense businesses.
“While the past few months have been difficult for all of us, we are all part of the same team. Only by listening and working together will we move forward,” Ortberg said after the contract was approved. “There is still much work to be done to restore the excellence that made Boeing an iconic company.”
Boeing will now be able to resume production, which is key to its recovery since much of the price of the aircraft is paid when it is delivered to customers. But it will take time to reach target production rates, especially for Boeing’s cash cow 737 Max.
“While the end of the strike and workers returning to the shop floor is a meaningful step in the right direction, resuming production will take time,” said Bank of America aerospace analyst Ron Epstein, who said some workers will need to be retrained. .
The union said machinists who build the best-selling 737 Max, 777 and 767 planes must return to work by Nov. 12. They could return as early as Wednesday.
president Joe Biden Congratulations to the union and the company, one of the country’s largest exporters, for reaching this agreement. Acting Labor Minister Lily Su participated in the negotiations and met with both parties.
“This contract provides for 38% wage increases over four years, improves workers’ ability to retire with dignity, and supports workplace equity,” Biden said in a statement. “This contract is important for Boeing as a leader in the U.S. aerospace industry. The future of the components is also important.”
third vote
It’s the third time machinists have voted since September, when 33,000 workers, mostly from the Seattle area get off work After overwhelmingly rejecting a proposal that promised a 25% pay rise, the proposal fell well short of the 40% demanded by unions. them rejected An even sweeter proposal came late last month.
A union member of the International Association of Machinists and Aerospace Workers District 751 counts votes after voting on Boeing Co.’s new contract proposal at the union hall during an ongoing strike on November 4, 2024 in Seattle, Washington, U.S.
David Ryder | Reuters
Unions urge approval
“This is a win. We can hold our heads high,” International Association of Machinists and Aerospace Workers District 751 President Jon Holden said when the results were announced Monday night.
Boeing said the average machinist salary at the end of this contract proposal will be $119,309. The first salary increase is 13%. The contract also adds 401(k) contributions and a signing bonus of up to $12,000, or a combination of a $7,000 bonus and $5,000 401(k) deposits.
Workers have complained about skyrocketing costs of living in the Seattle area, where Boeing makes most of its planes.
But unions have warned the latest deal proposed last week may be as good as workers expect.
“In every negotiation and strike, there comes a time when we are doing our best to bargain and withhold labor,” IAM District 751 said in a statement at the time. “We are now at the stage where we may be faced with offers in the future. Diminishing or lower risk.”
