Boeing machinists approve third proposed contract, end strike

The strike that saw 33,000 of Boeing’s machinists walk out of factories in the U.S. Northwest on Sept. 13^th has ended. The latest contract offer that Boeing (Seattle, Wash., U.S.) recently put forth, which includes a 38% general wage increase over the next four years, is a step up from the first two rejected offers of 25% and 35% over four years, respectively. But even with workers returning, the 7-week strike has left mounting challenges for the aerospace company, having halted a majority of 737 Max, 777 and 767 cargo plane production and, as a result, reducing Boeing’s profitability.

This was reported to be Boeing’s first strike in 16 years. According to The Seattle Times, Boeing’s union members pushed for greater concessions on wages, “which have failed to keep up as living costs skyrocketed in the Seattle area over the past decade.” The union’s initial demands included a 40% wage increase and “the restoration of a defined-benefit pension they lost a decade ago for a 401(k) retirement plan,” says Reuters. In addition to slightly larger pay increases, and restoration of the pension plan, the proposed contract includes “a $12,000 contract ratification bonus, up from $7,000 in the previous offer,” says PBS.org.

AP reports that the workers could “return to work as soon as Nov. 7 or as late as Nov. 12,” depending on when the union ratifies the contract. Boeing CEO Kelly Ortberg believes it might take “a couple of weeks” to resume production in part because some workers might need retraining.

Reuters adds that after the deal was agreed on, Ortberg provided a message to Boeing employees: “While the past few months have been difficult for all of us, we are all part of the same team,” he said. “There is much work ahead to return to the excellence that made Boeing an iconic company.”

Many sources suggest that Boeing’s challenges only seem to be growing larger as the planemaker receives setback after setback, including the Alaska Airlines door panel incident in January, ending with federal regulators limiting Boeing 737 Max production, and mounting quality concerns that have led to formal discussions to reacquire former aerostructures unit, Spirit AeroSystems.