Boeing's Strike Ends with 38% Wage Hikes
Machinists Vote to Ratify New Labor Contract
Over 2,500 Boeing machinists end their eight-week-long strike after voting to approve a new labor contract that includes a 38% wage increase over the next three years.
The strike, which began on September 1, 2022, has cost Boeing an estimated $1 billion in lost production. The new contract includes a number of concessions from the company, including a signing bonus of $3,000, a 10% increase in pension benefits, and improved healthcare coverage.
The machinists, who are represented by the International Association of Machinists and Aerospace Workers (IAM), had been seeking a 50% wage increase over the next three years. However, the company argued that such a large increase would make it difficult to compete with other aircraft manufacturers.
The new contract is a compromise that allows both sides to save face. The machinists get a significant wage increase, while Boeing gets the certainty of a stable workforce for the next three years.
The strike has had a significant impact on Boeing's production schedule. The company has been forced to delay deliveries of some of its aircraft, including the 787 Dreamliner. The new contract should allow Boeing to ramp up production and catch up on its backlog.
The end of the strike is a relief for both Boeing and the machinists. The company can now focus on ramping up production, while the machinists can get back to work and start earning their higher wages.
Key Takeaways:
- Boeing machinists have ended their eight-week-long strike after voting to approve a new labor contract.
- The new contract includes a 38% wage increase over the next three years, as well as a signing bonus, increased pension benefits, and improved healthcare coverage.
- The strike has cost Boeing an estimated $1 billion in lost production.
- The new contract is a compromise that allows both sides to save face.
- The end of the strike is a relief for both Boeing and the machinists.
Sources:
- New York Times: Boeing Machinists Approve Contract, Ending Strike
- Washington Post: Boeing Strike Ends as Machinists Ratify New Contract
- CNBC: Boeing Strike Ends With Machinists Approving New Contract
