- More than 30,000 Boeing (NYSE:BA) workers are set to return to work today after voting to accept the company’s latest contract offer
- The International Association of Machinists (IAM) announced that 59 per cent of its rank-and-file members approved the deal, a significant turnaround after nearly unanimous rejections of previous offers
- The strike, which began on September 13, was marked by escalating tensions as workers initially rejected Boeing’s first offer before extending the strike by voting down a second proposal just weeks later
- The Boeing Co. (NYSE:BA) last traded at US$151.00 per share. Boeing stock has lost 42.07 per cent since the year began
More than 30,000 Boeing (NYSE:BA) workers are set to return to work today after voting to accept the company’s latest contract offer, effectively ending the costliest strike in the United States in over 25 years.
The International Association of Machinists (IAM) announced that 59 per cent of its rank-and-file members approved the deal, a significant turnaround after nearly unanimous rejections of previous offers.
The strike, which began on September 13, was marked by escalating tensions as workers initially rejected Boeing’s first offer before extending the strike by voting down a second proposal just weeks later.
Under the new agreement, workers will receive an immediate 13 per cent pay raise, followed by 9 per cent increases in each of the next two years and an additional 7 per cent in the fourth year, culminating in a total pay increase exceeding 43 per cent. Members will also receive a $12,000 ratification bonus, part of which can be allocated to their 401(k) retirement accounts. However, the deal does not reinstate the traditional pension plan that was lost in 2014.
Despite facing numerous challenges, Boeing remains a crucial player in the U.S. economy, being the largest American exporter. The strike has had ripple effects throughout the industry, impacting many of Boeing’s 10,000 suppliers across all 50 states. Boeing estimates its annual contribution to the U.S. economy at US$79 billion, supporting approximately 1.6 million jobs directly and indirectly.
The Labor Department’s recent employment report indicated that 44,000 jobs were affected in October, accounting for both the striking workers and those at Boeing and its suppliers who were temporarily laid off due to the halt in commercial aircraft manufacturing.
Airlines have also faced short-term disruptions, as while they can continue operating existing Boeing aircraft, the delivery of new jets has been stalled. This delay compounds existing issues related to the quality and safety of Boeing jets, raising concerns in the aviation sector.
As workers return to their posts, the hope is that this agreement will pave the way for a more stable future for both Boeing and its employees, as they navigate the challenges ahead in the aerospace industry.
The embattled aerospace giant has been facing one problem after another, from its new Starliner astronaut capsule departing the International Space Station leaving its crew stranded in space, conspiracy to defraud the United States in connection with two fatal 737 Max crashes, the ongoing investigation into its merger with Spirit AeroSystems Holdings Inc. (NYSE:SPR) misleading investors, who can forget that door that flew off mid-flight.
Boeing develops, manufactures and services commercial airplanes, defence products and space systems for customers in more than 150 countries.
The Boeing Co. (NYSE:BA) last traded at US$151.00 per share. Boeing stock has lost 42.07 per cent since the year began.
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(Top photo: Boeing)
