The striking Boeing machinists of the International Association of Machinists and Aerospace Workers union agreed to end their strike late Monday night. The work stoppage lasted seven weeks and caused even more economic challenges for the plane manufacturing company, which was already suffering from other financial issues. The company previously reported a loss of $6.1 billion due to the strike.
The union factory workers accepted Boeing’s latest contract offer, which yielded significant gains in salaries and employee benefits. According to the Associated Press, the new four-year deal gives union members a 38% raise over four years and additional productivity incentives and bonuses. Currently, the average salary for Boeing machinists is reportedly $75,608. Under the terms of the new contract, employees will see that average salary total increase to $119,309 throughout the agreement.
New Boeing CEO Kelly Ortberg reportedly announced the end of the work stoppage and the agreement to the new contract in a message to employees. He was happy to have ended the strike and expressed optimism about the company’s future now that its West Coast factories would resume production. The new contract was passed with over 59% support from the members of the International Association of Machinists and Aerospace Workers union.
“While the past few months have been difficult for all of us, we are all part of the same team,” Ortberg said in a statement. “We will only move forward by listening and working together. There is much work ahead to return to the excellence that made Boeing an iconic company.”
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The strike had taken a significant toll on Boeing. Ortberg previously announced plans to cut about 10% of Boeing’s workforce because of the lack of production due to the strike, Reuters reported. Union leaders faced weeks of tough negotiations and reportedly endorsed the latest proposal because they believed it was the best offer that was going to be available.
“It is time for our members to lock in these gains and confidently declare victory,” IAM District 751 leadership told the Associated Press before ratifying the new proposal on Monday. “We believe asking members to stay on strike longer wouldn’t be right as we have achieved so much success.”
