Boeing Strike Ends as Machinists Union Approves New Contract

The Boeing strike is apparently over. After long and costly negotiations, workers have accepted Boeing’s latest contract offer.

According to the International Association of Machinists (IAM), 59% of members approved of Boeing’s newest deal. IAM leadership purportedly encouraged workers to accept the contract this time around, warning that ongoing negotiations could adversely affect future Boeing offers.

“I’m proud of our members. It is a win,” said union negotiator Jon Holden, per CNN. “They achieved a lot, and we’re ready to move forward.”

The approved contract includes an immediate 13% pay raise for union members followed by 9% wage increases for each of the next two years. In the final contract year, workers will receive another 7% raise. A $12,000 ratification bonus per worker was also included in the deal.

“While the past few months have been difficult for all of us, we are all part of the same team,” said Boeing CEO Kelly Ortberg. “We will only move forward by listening and working together.”

The Boeing Strike Needed To End

Just before workers walked off the job on Sept. 13, Boeing’s first contract offer was met with overwhelming disapproval. Not long after, Boeing put another deal on the table, but workers voted that one down as well. Reportedly, workers rejected previous offers due to Boeing’s refusal to restore a previously canceled pension plan from 2014. However, even the accepted contract does not bring back the plan.

During the strike, Boeing took a significant monetary loss. Industry analysts estimate the aircraft maker has lost $6.5 billion so far.

When union members stopped working, production at several Seattle plants came to a halt, leaving orders of 737, 767, and 777 aircraft unfulfilled. With significant delivery delays, confidence among waiting customers dwindled.

To mitigate further issues, it was in Boeing’s best interest to end the strike as soon as possible. Yet, the company estimates that the monetary impacts of the strike will still be felt well into 2025. According to Ortberg, now that the Boeing strike is over, the company can “reset” the relationship with the IAM.