Boeing employees have voted to favor the company’s most recent pay proposal, ending a protracted seven-week strike that has significantly impacted operations.
The newly established contract guarantees employees a 38% salary increase over the next four years.
According to the International Association of Machinists and Aerospace Workers (IAM) union, striking workers may begin to return to their positions as soon as Wednesday, with the latest possible date for their return set for November 12.
On September 13, approximately 30,000 Boeing workers initiated a walkout, resulting in a significant slowdown at the company’s factories and exacerbating an ongoing crisis.
The International Association of Machinists (IAM) reported that 59% of workers participating in the strike voted in favor of the newly proposed agreement. This deal features a one-time bonus of $12,000 (£9,300) and introduces modifications to the retirement plans of the workforce.
Union leader Jon Holden stated, “Through this victory and the strike that made it possible, IAM members have taken a stand for respect and fair wages in the workplace.”
The union had earlier demanded a 40% pay raise, while workers turned down two prior proposals from the company.
“The past few months have posed challenges for everyone, but we remain united as a team,” stated Boeing’s chief executive, Kelly Ortberg.
“Significant efforts lie ahead to restore the excellence that once defined Boeing as an iconic company.”
In a clear indication of the White House’s commitment to addressing the strike at a critical American corporation, acting US Labor Secretary Julie Su traveled to Seattle last month to assist in the negotiations.
Boeing is actively working to stabilize its financial situation and resolve the ongoing strike, which has reportedly resulted in losses nearing $10 billion, as indicated by the consulting firm Anderson Economic Group.
In October, the commercial aircraft division disclosed operating losses amounting to $4 billion for the September quarter.
Last week, the company initiated a share sale to generate over $20 billion.
Following alerts regarding the potential consequences of an extended strike, concerns have emerged that Boeing’s credit rating may face downgrades, resulting in increased borrowing costs for the company.
In a recent announcement, the company revealed plans to reduce its workforce by approximately 17,000, with the initial redundancy notifications anticipated to be distributed in mid-November.
In January, Boeing faced a significant crisis as a piece of one of its passenger planes dramatically blew out mid-air.
The company’s space division faced a setback in its reputation following the Starliner vessel’s return to Earth without any astronauts on board.
