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Members of the International Association of Machinists and Aerospace Workers District 751 celebrated in Seattle on November 4, 2024, after voting to approve a new contract with Boeing, effectively concluding a strike that had lasted over seven weeks. This strike had significantly disrupted the company’s aircraft production, which was already facing substantial financial challenges.
The contract received a 59% approval from the union members and includes a notable pay increase of 38% over the next four years, along with various other enhancements to worker benefits. This agreement comes as a crucial relief for Boeing’s new CEO, Kelly Ortberg, who took on the role in August during a tumultuous period marked by safety and production issues. Recently, the company raised more than $20 billion through a stock sale to address its financial hurdles and warned investors of anticipated cash burn through 2025.
With the contract now ratified, Boeing can resume production, which is vital for its recovery, particularly since a large portion of the revenue from aircraft sales is generated upon delivery to customers. Ortberg emphasized unity and collaboration in his remarks after the contract was signed, stating, “Even though the last few months have been difficult for all of us, we are all part of the same team. We will move forward only by listening and working together. There is much work to be done to return to the excellence that made Boeing an iconic company.”
President Joe Biden praised both the union and Boeing for reaching the agreement, recognizing the company’s role as one of the largest exporters in the United States. Acting Labor Secretary Julie Su also played a role in the negotiations, facilitating discussions between the two parties. In a statement, Biden highlighted the contract’s provisions, which not only include significant wage increases but also enhancements to retirement benefits and workplace equity. “This contract is also important to Boeing’s future as a key part of the American aerospace industry,” he added.
This vote was the third attempt by the machinists to secure a satisfactory agreement since the strike began in September, when approximately 33,000 workers primarily from the Seattle area walked off the job after rejecting an initial proposal. The first offer included a 25% wage increase, which was far below the 40% increase demanded by the union. A subsequent proposal was also turned down before the current agreement was reached.
Jon Holden, president of District 751, expressed pride in the outcome, stating, “This is a victory. We can hold our heads high.” According to the union’s announcement, machinists who manufacture popular aircraft models like the 737 Max, 777, and 767 are expected to return to work by November 12 at the latest, with some potentially resuming as early as Wednesday.
Under the terms of the new contract, machinist salaries are projected to average $119,309 by the end of the agreement. The initial salary increase will be 13%, with additional benefits including raised 401(k) contributions and a signing bonus of up to $12,000, or an alternative of a $7,000 bonus alongside a $5,000 401(k) contribution.
The union had previously highlighted the rising cost of living in the Seattle area, where most Boeing planes are produced, as a significant concern for workers. They also indicated that the latest deal might represent the best possible outcome, given the current negotiation climate. “In every negotiation and strike, there is a point where we have extracted everything we can by negotiating and withholding our jobs,” the union stated. “We are at that point now and risk regressive or lower supply in the future.”
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