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Boeing factory workers vote to accept latest contract offer, ending seven-week strike

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Boeing factory workers vote to accept latest contract offer, ending seven-week strike

Topline

Striking Boeing factory workers voted to accept the company's revised contract offer – which promised a larger wage increase and bonuses – and end a seven-week work stoppage. The crisis-ridden company thus paved the way for the resumption of production lines for its key aircraft.

Important facts

In an update on social media, the International Association of Machinists and Aerospace Workers (IAM) union, which represents the striking workers, said 59% of its members voted in favor of the new contract offer.

The striking machinists can return to work on the first shift on Wednesday or at the latest on November 12th, i.e. next Tuesday, the statement continues.

Jon Holden, the local president of the IAM union, said the new contract was a “victory”, adding: “We have all stayed strong and achieved something we had not achieved in the last 22 years.”

Holden said her job now is to “get back to work and start building the planes, raising the rates and getting this company back to financial success.”

The contract offer approved by the striking workers includes a 38% raise over four years and a combined cash bonus of $12,000 – including a $7,000 ratification bonus and a $5,000 deposit into their 401(k). ) accounts.

Boeing CEO Kelly Ortberg said the company was “pleased to have reached a ratified agreement” with the union, adding: “There is still much work ahead to return to the excellence that has made Boeing an iconic company.” company has made.”

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Crucial quote

President Joe Biden congratulated the union on reaching the agreement, saying: “Over the last four years, we have shown that collective bargaining works. Good contracts benefit workers, businesses and consumers – and are key to growing the American economy from the center out and from the bottom up.”

Big number

33,000. That's the number of Boeing factory workers from the Pacific Northwest who took part in the strike.

Important background

The end of the seven-week strike is much-needed good news for Boeing at a time when the plane maker is grappling with multiple crises. The work stoppage shutdown significantly affected production of key Boeing aircraft, including the best-selling 737 MAX, the 767 and the 777. Last month, the company announced its financial results for the third quarter of 2024, reporting a loss of $6.1 billion. Dollar. In announcing the results, the company's CEO Kelly Ortberg called for a “fundamental culture change within the company.” To boost its cash reserves and stave off a credit downgrade, the company conducted a stock offering last month to raise $21.1 billion. Boeing is also facing regulatory scrutiny of its manufacturing practices and safety standards after a series of incidents involving its planes in recent years. Earlier this year, a door plug on an Alaska Airlines Boeing 737 Max 9 plane exploded shortly after takeoff, resulting in an emergency landing. The incident prompted the FAA to ground more than 171 Boeing 737 Max 9s and prevented the company from expanding production of its best-selling aircraft.

Further reading

Boeing and striking workers resume talks a week after union vote to reject contract offer (Forbes)

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