New York, Tuesday, November 05, 2024-Boeing employees have concluded a seven-week strike early today after approving a new contract that promises a 38% pay increase over the next four years.
Around 30,000 workers had halted operations at Boeing since September 13, impacting production at the aviation manufacturer’s facilities and deepening its financial strain. Under the new agreement, workers will also receive a $12,000 signing bonus and modifications to their retirement benefits, according to the International Association of Machinists and Aerospace Workers (IAM) union.
The union confirmed that 59% of members voted in favor of Boeing’s offer, which was its third proposal after workers rejected previous offers.
IAM emphasized that the strike served as a strong statement for fair wages and respect. Boeing also acknowledged the challenges posed by the strike and highlighted the company’s focus on rebuilding its reputation for quality and excellence.
The strike’s financial toll on Boeing has been severe, with the company reportedly losing nearly $10 billion.
In October, Boeing reported $4 billion in losses in its commercial aircraft division for Q3, partly due to the strike. The company recently launched a share sale aiming to raise over $20 billion to stabilize its finances, amid concerns that prolonged disruptions could lead to credit rating downgrades.
The White House had also intervened, with acting Labor Secretary Julie Su traveling to Seattle to support negotiations.
Boeing’s challenges over recent months have included layoffs, anticipated redundancies, and technical issues affecting both its commercial and space programs.
