Boeing strike ends as workers agree 38% pay rise deal

Aviation giant Boeing secures pay rise agreement with union.

After a prolonged seven-week strike, Boeing workers have voted to accept the company’s revised pay offer, marking the end of a significant work stoppage that affected the company’s operations. The new contract promises a substantial 38% pay increase over the next four years, providing workers with long-awaited financial and workplace assurances.

Approximately 30,000 workers from Boeing’s plants across the U.S. had walked off the job on 13 September, demanding better wages and benefits. This walkout led to considerable production delays, intensifying Boeing’s operational challenges and underscoring the demands of the workers and the pressure on the company to reach an agreement.

With the new deal in place, employees are expected to return to work as early as Wednesday, with some possibly resuming duties by mid-November, according to the International Association of Machinists and Aerospace Workers (IAM) union.

The IAM reported that 59% of the union’s members voted in favour of the agreement, which also includes a one-off bonus of $12,000 (£9,300) and modifications to retirement benefits. Jon Holden, a union leader, praised the outcome, stating that the deal reflects the workers’ resolve and represents “a stand for respect and fair wages in the workplace.” The union had initially pushed for a 40% wage increase and had previously rejected two prior offers from Boeing.

While Boeing’s leadership acknowledged the challenges of recent months, CEO Kelly Ortberg noted that the company’s focus is now on resuming full operations and reinforcing its commitment to excellence. “While the past few months have been difficult for all of us, we are all part of the same team,” Ortberg said, emphasising the shared goal of restoring Boeing’s reputation as a leading aviation firm.

The strike drew attention from high-ranking officials, including acting U.S. Labour Secretary Julie Su, who travelled to Seattle to support negotiation efforts between the two sides. The government’s involvement highlighted the importance of Boeing as a key industry player in the American economy.

As Boeing moves to stabilise its financial position following the strike, consulting firm Anderson Economic Group estimates that the work stoppage has cost the company nearly $10 billion. Boeing’s commercial aircraft segment alone reported losses of $4 billion in the third quarter, with the company taking steps such as launching a share sale to raise more than $20 billion to cover these financial gaps. The prolonged strike had also raised concerns that Boeing’s credit rating might be downgraded, which would have increased its borrowing costs.

In response to the ongoing financial strain, Boeing has announced plans to reduce its workforce by approximately 17,000 positions, with layoff notices expected to begin in mid-November. This decision comes as Boeing faces multiple challenges, from repairing its public image following technical failures to rebuilding trust within the aerospace sector.