Boeing factory workers in Seattle have ended their strike and signed a new contract that includes a 38% salary increase.

On November 5, 2024, Boeing employees on the U.S. West Coast concluded a seven-week strike after 59% of union members voted in favor of a new contract that includes a 38% salary increase over four years. The strike halted much of the aircraft production, which resulted in financial losses for the company, but both parties have now reached an agreement, allowing operations at the factory to resume.

New Boeing Contract Terms: Pay Raises and Bonuses

The new contract, approved by 59% of the votes, provides the wage increases that workers had been seeking. The contract includes a 38% pay raise over four years and the addition of bonuses. John Holden, the chief negotiator for the union, expressed satisfaction with the outcome, highlighting the significance of these improvements:

“This is a victory. We can hold our heads high,” said Holden, addressing union members. “Now our task is to get back to work.”

Another worker, David Lemon, a calibration equipment certification specialist, noted that the contract secured their target income increase of 40% thanks to the pay raise and annual bonuses set at 4%.

“We achieved this,” he added.

Impact of the Strike on Boeing and Financial Losses

With the end of the first strike in 16 years, Boeing received much-needed relief. The strike halted the production of models such as the 737 MAX and wide-body aircraft 767 and 777, which significantly impacted the company's operational activities. According to analysts, the company was losing about $100 million daily as a result of the strike. To maintain its credit rating, Boeing had to secure $24 billion in investments last week.

The company's CEO, Kelly Ortberg, noted that the conclusion of the strike will help restore operational processes and improve relations with workers:

“While the last few months have been tough for all of us, we are all part of one team,” Ortberg said. “We will move forward only by listening and working together. There is still a lot of work ahead to return to the excellence that made Boeing a landmark company.”

Boeing's Commitments to Workers and Promises for New Production

Boeing also committed to building the next aircraft in the Seattle area.

“They never made commitments to us about new aircraft until the launch,” Holden noted, emphasizing the importance of such guarantees for the workers.

The company stated that the average annual salary of workers under the new contract will be $119,309, significantly higher than the previous level of $75,608. It is expected that the total payroll for the company will increase by $1.1 billion, including ratification bonuses of $12,000 for each worker, resulting in additional expenses of $396 million.

Boeing's Production Plans and Return to Work

Considering the costs to restore production, Boeing will need several weeks to reach planned output levels. The production of the 737 MAX in the coming months is expected to remain in single digits per month, below the planned rate of 38 aircraft. According to union representatives, workers will return to assembling aircraft starting November 6, with full production recovery anticipated by November 12.

Conclusion of Boeing Strike and Consequences for the Company

Voter turnout among union members was about 80%, with participation from more than 26,000 individuals. Many workers expressed disappointment with Boeing's previous actions, which contributed to the rejection of two earlier proposals. Analysts believe that the new contract and improved conditions will help restore trust between the workers and the company's management.

“We can rebuild relationships and move forward,” Holden noted, adding that workers are ready to return to their tasks after the difficult weeks of the strike.