After seven weeks on strike, Boeing workers have accepted a new pay offer, allowing over 30,000 union members to return to work as early as Wednesday or by November 12, according to the International Association of Machinists and Aerospace Workers (IAM). The approved contract includes a 38% pay increase over four years, a one-time $12,000 bonus, and improved retirement benefits.
The IAM union reported that 59% of members voted in favor of the deal. Union leader Jon Holden hailed the outcome, calling it “a victory” and encouraging members to take pride in their efforts. The union had initially sought a 40% raise, and workers had rejected two previous offers from Boeing.
The strike significantly affected Boeing, slowing production and deepening the company’s financial woes. Consulting firm Anderson Economic Group estimated the strike cost Boeing nearly $10 billion, with its commercial aircraft division reporting a $4 billion operating loss for the last quarter. In response, Boeing recently initiated a $20 billion share sale to stabilize finances, following concerns that a prolonged strike could trigger credit rating downgrades and higher borrowing costs.
Adding to Boeing’s challenges, recent setbacks include a mid-air blowout of a passenger plane component in January and a failed astronaut mission with its Starliner spacecraft. The company also announced last month that it would lay off around 17,000 employees, with redundancy notices beginning mid-November.
This agreement brings relief to Boeing’s workforce and offers a step toward recovery as the company works to rebuild its operations and reputation.
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