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Boeing workers vote to end 7-week strike, accept new contract with 38% raise

Boeing workers vote to end 7-week strike, accept new contract with 38% raise

CBC
Tuesday, November 5, 2024 12:57 PM GMT

Boeing's West Coast factory workers accepted a new contract offer on Monday, ending a bitter seven-week strike that halted most jet production and deepened a financial crisis at the troubled planemaker.

The union said members voted 59 per cent in favour of the new contract, which includes a 38 per cent pay rise spread over four years, easing pressure on new Boeing CEO Kelly Ortberg after two previous offers were voted down in recent weeks.

"This is a victory. We can hold our heads high," Jon Holden, the union's lead negotiator, told members after the results were announced. "Now it's our job to get back to work."

However, Boeing refused to meet strikers' demand to restore a company pension plan that was frozen nearly a decade ago. 

The end of the first strike in 16 years by Boeing's largest union provides welcome relief for a company that has lurched from one setback to the next since a door panel blew off a near-new 737 MAX plane in mid-air in January.

In a message to Boeing employees after the vote, Ortberg said he was pleased the union had ratified a deal.

"While the past few months have been difficult for all of us, we are all part of the same team," he said. "There is much work ahead to return to the excellence that made Boeing an iconic company."

Around 33,000 machinists who work on the best-selling 737 MAX jet, as well as the 767 and 777 wide-bodies, have been on strike since Sept. 13, demanding a 40 per cent wage increase and the restoration of a defined-benefit pension they lost a decade ago for a 401(k) retirement plan.

"I'm ready to get back to work," said David Lemon, a worker in equipment calibration certification in Seattle who voted in favour of the contract.

He calculated that the pay hike and a four per cent bonus — the guaranteed minimum annual payout to the reinstated incentive plan — amounted to the 40 per cent increase they'd gone after. "We got there," he said.

The old pension will not be restored, but workers received a bump to company matching contributions for their 401(k) plans.

Boeing also promised to build the next airplane in the Seattle area. "They've never given us a commitment" to a new airplane before launch, Holden said.

U.S. President Joe Biden and acting Labour Secretary Julie Su, who facilitated the contract talks, congratulated workers and the company on the outcome. "We've shown that collective bargaining works," Biden said.

Boeing said Su was instrumental in moving both sides toward reaching a ratified deal.

Read full story on CBC
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