Unionized machinists at U.S. aerospace giant Boeing voted Monday to accept a contract offer and end their strike after more than seven weeks, clearing the way for the company to restart production of its bestselling airliner and generate much-needed cash.
Leaders of the International Association of Machinists and Aerospace Workers (IAM) district in Seattle said 59% of members who cast ballots agreed to approve the company’s fourth formal offer and the third put to a vote. The deal includes pay raises of 38% over four years and ratification and productivity bonuses.
However, Boeing refused to meet strikers’ demand to restore a company pension plan – that was frozen nearly a decade ago.
The contract’s ratification on the eve of Election Day clears the way for a major U.S. manufacturer and government contractor to restart Pacific Northwest assembly lines that the factory workers’ walkout have idled for 53 days.
Boeing CEO Kelly Ortberg said in a message to employees Monday night that he was pleased to have reached an agreement.
"While the past few months have been difficult for all of us, we are all part of the same team," Ortberg said. "We will only move forward by listening and working together. There is much work ahead to return to the excellence that made Boeing an iconic company."
According to the union, the 33,000 workers it represents can return to work as soon as Wednesday or as late as Nov. 12. Boeing’s CEO has said it might take "a couple of weeks" to resume production in part because some could need retraining.
The average annual pay of Boeing machinists is currently $75,608 and eventually will rise to $119,309 under the new contract, according to the company.
Reactions were mixed even among union members who voted to accept the contract.
Although she voted "yes," Seattle-based calibration specialist Eep Bolano said the outcome is "most certainly not a victory." Bolano said she and her fellow workers made a wise but infuriating choice to accept the offer.
"We were threatened by a company that was crippled, dying, bleeding on the ground, and we as one of the biggest unions in the country couldn't even extract two-thirds of our demands from them. This is humiliating," she said.
For other workers like William Gardiner, a lab lead for Cal-Cert calibration services, the vote was a cause for celebration.
"I'm extremely pumped over this vote," said Gardiner, who has worked for Boeing for 13 years. "We didn't fix everything – that's OK. Overall, it's a very positive contract."
Leaders of IAM District 751 had endorsed the latest proposal, saying they thought they had gotten all they could through negotiations and the strike.
"It is time for our members to lock in these gains and confidently declare victory," the union district said before the vote. "We believe asking members to stay on strike longer wouldn’t be right as we have achieved so much success."
President Joe Biden congratulated the machinists and Boeing for coming to an agreement that he said supports fairness in the workplace and improves workers’ ability to retire with dignity. The contract, he said, is important for Boeing’s future as "a critical part of America’s aerospace sector."
A continuing strike would have plunged Boeing into further financial peril and uncertainty.
Ortberg, an outsider who started at Boeing only in August, has announced plans to lay off about 10% of the workforce, about 17,000 people, due to the strike and a series of other factors that diminished the company’s reputation and fortunes this year.