Boeing strike ends after machinists approve new labor contract with 38% wage increases

Boeing machinists approved a new labor deal Monday, ending a more than seven-week strike that halted most of the aircraft production at the company that was already struggling with mounting losses.

Machinists voted 59% in favor of the new contract, which includes 38% wage increases over four years and other improvements.

The approval is a relief for Boeing’s new CEO Kelly Ortberg, who took the top job in August to steer the company through its safety and manufacturing crises.

President Joe Biden congratulated the union and the company — one of the country’s top exporters — on reaching the deal. Acting Labor Secretary Julie Su had gotten involved with the negotiations, meeting with both sides.“This contract provides a 38% wage increase over four years, improves workers’ ability to retire with dignity, and supports fairness at the workplace,” Biden said in a statement. “This contract is also important for Boeing’s future as a critical part of America’s aerospace sector.”

It was the machinists’ third vote since September, when the 33,000 workers, mostly in the Seattle area, walked off the job after overwhelmingly rejecting a proposal promising a 25% raise, far short of the 40% the union sought. They rejected another sweetened proposal late last month.

“This is a victory. We can hold our heads high,” said International Association of Machinists and Aerospace Workers District 751 President Jon Holden as he announced the results late Monday.

The machinists, who build planes such as the bestselling 737 Max, 777 and 767 aircraft must return to their jobs no later than Nov. 12 the union said. They could return as early as Wednesday.

Boeing said machinist pay will average $119,309 at the end of this contract proposal. The first wage increase will be 13%. The contract also increases 401(k) contributions and a signing bonus of up to $12,000 or a combination of a $7,000 bonus and $5,000 401(k) deposit.

Workers had complained about the skyrocketing cost of living in the Seattle area, where most of Boeing’s aircraft are produced.

But the union had warned that the latest deal, which was proposed last week, might be as good as workers can expect to get.

“In every negotiation and strike, there is a point where we have extracted everything that we can in bargaining and by withholding our labor,” the International Association of Machinists and Aerospace Workers District 751 said in a statement then. “We are at that point now and risk a regressive or lesser offer in the future.”