Strike Over: Boeing Workers Accept New Contract

In a decisive turn of events, Boeing workers have voted to accept a new contract, concluding the most costly strike in the United States in over 25 years. The strike, which began on September 13 and ended with the vote on November 4, 2024, saw a significant majority of members from the International Association of Machinists (IAM) approve the deal, with 59% in favor. 

Contract Highlights 

The new contract includes substantial pay increases for workers. Employees will receive an immediate raise of 13%, followed by annual raises of 9% in each of the next two years and a 7% raise in the fourth year, culminating in total raises exceeding 43%. Additionally, workers will receive a $12,000 ratification bonus, which can be partially contributed to their 401(k) retirement plans. However, the contract did not restore the traditional pension plan that was lost in 2014, which remains a point of contention for some members. 

Union President Jon Holden expressed pride in the achievements of the IAM members and their readiness to return to work after a period marked by frustration and uncertainty. The shift in sentiment among workers was notable, especially after two previous rejections of Boeing's offers, driven by a desire to return to their jobs. 

Financial Implications of the Strike 

The strike has had a severe financial impact on both workers and the company. Strikers collectively lost over $600 million in wages during the duration of the work stoppage. Boeing's estimated losses are around $6.5 billion, with broader economic repercussions exceeding $11.5 billion. The aerospace giant has been grappling with significant financial challenges, reporting nearly $40 billion in losses since the grounding of the 737 Max due to fatal crashes. 

Despite these setbacks, Boeing continues to play a critical role in the U.S. economy, contributing an estimated $79 billion annually and supporting approximately 1.6 million jobs. However, the strike has also disrupted operations within Boeing’s extensive supply chain, affecting around 10,000 suppliers across the country. 

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Broader Economic Context 

The Labor Department reported that the strike and its aftermath had impacted 44,000 jobs in October alone, including layoffs among non-striking workers at Boeing and its suppliers. The airline industry is also feeling the pinch, facing short-term disruptions due to halted deliveries of new jets, which adds to existing delays stemming from safety concerns. 

As Boeing moves forward, newly appointed CEO Kelly Ortberg, who took the helm shortly before the strike began, aims to reset the relationship with the union and navigate the challenges ahead. With the strike concluded, the focus now shifts to rebuilding operations and stabilizing both worker relations and the company’s financial standing in a rapidly changing economic landscape.