A vote by 33,000 Boeing workers today has finally broken strike action which has extended over seven weeks, members of IAM District 751 and W24 Machinists voted 59% in favor of accepting the latest labor proposal. Boeing CEO Kelly Ortbergshared a statement on the approval of a four-year contract by Pacific Northwest production and maintenance personnel.
We were pleased to reach a ratified agreement with IAM 751 and W24 tonight, he began. Ortberg acknowledged the difficulties of the past few months. He stressed they could only move forward by listening and working together.
This means that workers can now return to work as early as Wednesday 6 November. The International Association of Machinists and Aerospace Workers (IAM) union has issued a brief statement to members. It advised that workers must now return by 12 November, with strike action now officially over.
The agreed upon proposal will mean a wage increase of 38% over four years for the Boeing workers. This increases the previously rejected offer of 35%, and came closer to the original demand of a 40% wage rise. A one-off contract ratification bonus of $12,000 to workers will also be paid to workers for approving the agreement. This is an increase from the $7,000 payment which was previously offered.
The strike action originally began on 13 September, and has had a crippling effect on Boeing’s Pacific Northwest operations. The fallout has been considerable, with a broad shutdown in aircraft production and a significant hit to Boeing’s financial health.
According to analysts, the financial impact of the extended strike had resulted in losses of approximately US $1 billion per month for the US manufacturing giant.
With the impasse now broken, Boeing and its management ranks now face the task of resuming suspended operations. Last week, CEO Kelly Ortberg touched on the complexity of the re-start whilst delivering commentary on Boeing’s Q3 financial situation.
Once we get back, we have the task of restarting the factories and the supply chain. And it’s much harder to turn this on than it is to turn it off. So, it’s critical, absolutely critical, that we do this right. our Safety and Quality Management Systems will guide us through the restart. We have a detailed return-to-work plan in place and I’m really looking forward to getting everybody back and getting to work on that plan.
With 33,000 machinists now back on track for the re-start, the US aerospace giant faces deeper issues of turning around systemic cultural issues. In Kelly Ortberg’s words: “There is much work ahead to return to the excellence that made Boeing an iconic company. The recommencement of robust and timely production processes now becomes a focal point, and the longer haul of turning Boeing’s fortunes around begins.
