Seattle: Boeing workers have voted to accept the company’s latest pay offer, effectively ending a damaging seven-week strike that began on September 13.
The decision allows striking workers to return to their jobs as early as Wednesday, with the latest possible return date set for November 12, according to the International Association of Machinists and Aerospace Workers (IAM) union.
The newly ratified contract grants workers a significant 38 percent pay increase over the next four years, along with a one-time bonus of $12,000 (£9,300) and modifications to retirement plans.
The IAM union reported that 59 percent of the striking workers voted in favour of the agreement, which comes after two previous offers from Boeing were rejected. Initially, the union had sought a 40 percent pay raise, emphasising the need for better compensation in light of rising living costs.
The strike, which involved over 30,000 unionised workers, caused a dramatic slowdown in Boeing’s production and exacerbated ongoing financial challenges for the company.
In October, Boeing’s commercial aircraft division reported operating losses of $4 billion for the third quarter, prompting the company to initiate a share sale to raise more than $20 billion to stabilise its finances.
Boeing’s ongoing crisis has roots in multiple challenges, including a mid-air incident involving one of its passenger planes earlier this year and setbacks in its space division, where the Starliner vessel was forced to return to Earth without astronauts.
The company has also announced plans to lay off around 17,000 workers, with redundancy notices expected to start in mid-November. Furthermore, concerns have been raised about potential downgrades to Boeing’s credit rating, which could increase borrowing costs if the strike had continued.
With the acceptance of the new contract, Boeing aims to regain stability and rebuild trust with its workforce as it navigates these turbulent times.
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