Boeing’s Pacific Northwest assembly lines are set to resume after union members ratified a new contract late Monday, ending a 53-day strike that had paralyzed production. The labor standoff, which affected thousands of machinists, is resolved as the International Association of Machinists and Aerospace Workers (IAM) District 751 accepted Boeing’s latest proposal.
Bank of America estimated that Boeing had been losing $50 million daily during the strike, which halted operations at its unionized Washington plants but did not impact the 787 production line in South Carolina. Boeing CEO Kelly Ortberg expressed optimism following the agreement, urging unity and cooperation as the company works to recover from the strike’s impact. “There is much work ahead to return to the excellence that made Boeing an iconic company,” Ortberg said.
The new contract includes significant financial benefits for Boeing’s machinists. Their average annual pay, currently $75,608, will eventually increase to $119,309. The deal also provides each worker a $12,000 ratification bonus and preserves a performance bonus initially slated for elimination. The union reported that pay raises over the contract’s duration would result in a cumulative 43% increase.
Union leaders celebrated the outcome as a hard-won success. “You stood strong and you won,” IAM District 751 President Jon Holden said. While many members were pleased, reactions varied. Eep Bolaño, a Seattle-based calibration specialist, supported the contract but expressed frustration with the concessions made. Meanwhile, long-time Boeing employee William Gardiner was excited, calling it “a very positive contract.”
The White House congratulated both parties on reaching an agreement. President Joe Biden lauded the contract for promoting fairness and safeguarding Boeing’s standing in the aerospace sector. Acting Labor Secretary Julie Su also played a role, stepping in several times to help mediate during critical points in the negotiation.
The strike, which began in September after machinists overwhelmingly rejected Boeing’s initial 25% wage increase offer, marked the first such action by Boeing’s machinists since 2008. The 53-day walkout, alongside recent investigations into safety and production practices, has compounded a challenging year for the aerospace giant. Boeing is also working to address concerns surrounding its 737 Max planes following an incident in January and previous crashes in 2018 and 2019.
With production set to resume, Washington Governor Jay Inslee acknowledged the workers’ determination and their pivotal role in restoring Boeing’s operations. “Washington is home to the world’s most skilled aerospace workers, and they understandably took a stand for the respect and compensation they deserve,” Inslee stated.
