Boeing strike ends: workers win pay rise and bonuses

After seven weeks on strike, Boeing's West Coast factory workers voted on Monday to accept a new contract, marking the end of a prolonged standoff that had severely disrupted jet production. With 59% of the union members voting in favour, the new contract promises a 38% pay rise over four years, providing much-needed stability for the company and alleviating pressures on Boeing's CEO, Kelly Ortberg, after two prior offers had been rejected.

The strike, which began on September 13, involved approximately 33,000 machinists who manufacture Boeing's bestselling models, including the 737 Max, 767 and 777 aircraft. These workers had walked off the job seeking a 40% wage increase and the reinstatement of a defined-benefit pension, which was replaced by a 401(k) plan over a decade ago. Although the pension will not be restored, the contract includes an increase in company contributions to their retirement plans, addressing some worker concerns.

Union leader Jon Holden declared the outcome a “victory,” saying, “We can hold our heads high.” He urged members to return to work with renewed pride. This agreement is a significant milestone, being the first strike in 16 years by Boeing's largest union and comes amid a challenging period for the planemaker, which has faced production setbacks and financial strain since an incident in January when a panel detached mid-flight from a new 737 Max.

Boeing's financial losses during the strike, coupled with previous operational challenges, had placed immense pressure on leadership to find a resolution. Ortberg expressed satisfaction with the union's ratification, viewing it as a step towards stabilising operations. The new contract terms are anticipated to strengthen Boeing's workforce retention, reduce disruptions, and bring a measure of peace to a company that has weathered turbulent times in recent years.