On November 4, 2024, the prolonged strike by Boeing's factory workers, members of the International Association of Machinists and Aerospace Workers (IAM), came to an end as they voted in favor of a new labor contract. The agreement, which was narrowly approved with 59% of the vote, includes a substantial 38% wage increase spread over four years, marking a significant victory for the union after weeks of contention.
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The strike, which began on September 13, had halted production of Boeing's key aircraft, including the 737 MAX, the 767, and the 777, at their Pacific Northwest plants. This industrial action, the first major strike against Boeing in 16 years, was fueled by demands for higher wages and the reinstatement of a traditional pension plan, which had been replaced by a 401(k) scheme a decade prior. Under the newly accepted contract, workers will not only see their wages increase but will also receive a $12,000 ratification bonus. However, the deal did not meet the union's demand for the return of the defined-benefit pension plan, instead opting to enhance contributions to the 401(k) retirement plans. While this was a point of contention, the majority of the union members deemed the overall package sufficient to end the strike.
Jon Holden, the lead negotiator for the IAM, declared the acceptance of the contract as a "victory" for the workers, emphasizing the importance of returning to work. "We can hold our heads high," he stated, reflecting on the solidarity and determination of the striking workers. Their return to work is set to start as early as the first shift on November 6, with a full return mandated by November 12. The resolution of the strike provides much-needed relief for Boeing, which has been grappling with financial challenges due to the production halt.
The company, led by CEO Kelly Ortberg, has faced a tumultuous period with issues ranging from production delays to safety concerns, highlighted by a January incident involving a 737 MAX where a door panel detached in mid-flight. This agreement allows Boeing to begin the process of resuming aircraft production, although it will take time to ramp up to previous levels. The end of the strike also signifies a step towards mending the strained relations between Boeing's management and its workforce, aiming to restore the company's operational stability and regain market confidence.