As Employees Approve a New Contract, The Boeing Strike Comes to an end.

Reuters, Seattle, November 4 - Boeing (BA.N) is initiating a new phase. Following a challenging seven-week strike that brought most jet production to a standstill and exacerbated the financial troubles of the struggling aircraft manufacturer, West Coast plant workers approved a new contract offer on Monday, as reported by their union.

After two prior proposals were rejected in recent weeks, the union said that members voted 59% in favor of the new deal, which provides a 38% salary increase spread over four years, relieving pressure on Kelly Ortberg, the recently appointed CEO of Boeing.

"This is a triumph. After the findings were disclosed, union senior negotiator Jon Holden addressed the members, stating, "We can hold our heads high." He added, "Now it's our responsibility to return to work."

 
For Boeing, which has been reeling from setback after setback since a door panel blew off a near-new 737 MAX jet in mid-air in January, the end of the first The strike, which is the first in 16 years by the company’s largest union, is a welcome relief.

After the vote, Ortberg expressed his satisfaction that the union had approved a settlement in a statement to Boeing workers.

 "We are all on the same team, even though the past few months have been challenging for everyone," he said. The only path ahead, he underlined, is via listening and collaboration." Significant efforts are still required to rebuild Boeing's reputation as a reliable brand.

Having been on strike since September 13, approximately 33,000 machinists involved in the production of the popular 737 MAX, as well as the 767 and 777 widebody aircraft, are demanding a 40% pay increase. raise and the reinstatement of a defined-benefit pension that they lost ten years ago for a 401(k) retirement plan.

"I'm eager to return to work," stated David Lemon, a Seattle-based employee certified in equipment calibration who backed the agreement.

He determined that the 40% rise they had sought was equal to the wage increase plus a 4% bonus, which was the minimum yearly payout promised by the reestablished incentive plan. His words, "We got there,"

Employees got an increase in employer matching contributions for their 401(k) plans, but the previous pension would not be reinstated.

In addition, Boeing committed to building the next aircraft in Seattle. Holden remarked, "They've never made a commitment to us" regarding a new aircraft prior to the launch.

According to two persons briefed on the situation, 737 MAX output is predicted to remain in the single digits each month for some time, falling well short of the 38 per month objective set prior to the strike. This indicates that it will now take several weeks to increase jet production and enhance cash flow.

Although Boeing has cautioned that some employees will need to be retrained due to the extended time away from the factory floor, the International Association of Machinists and Aerospace Workers The IAM announced that workers can start returning to the assembly line on Wednesday and are required to be back at work by November 12.

Analysts estimated that Boeing was losing around $100 million every day due to the strike, which is why the aircraft manufacturer raised $24 billion from investors last week in an effort to maintain its investment-grade credit rating.

Ortberg must now mend fences with machinists in the Pacific Northwest who have used the strike as a way to release frustrations accumulated over a decade in which salaries have not kept pace with inflation and living expenses in the Seattle region have skyrocketed.

Despite the difficult negotiations, Holden added, employees may mend their connection with Boeing executives.

Boeing announced that the average machinist's salary will increase from $75,608 to $119,309 by the conclusion of the new four-year contract.

According to analysts at Jefferies, the salary raise may boost Boeing's payroll bill by $1.1 billion over the next four years, and a $12,000 ratification bonus for each union member might cause an additional $396 million in outflows.

The turnout was close to 80%, with almost 26,000 union members casting ballots. The previous contract has angered many union members, which helps to explain why several contract proposals were rejected.

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Authored by Joe Brock and Peter Henderson; edited by Sandra Maler, Rod Nickel, and Jamie Freed; reported by Dan Catchpole in Seattle, Allison Lampert in Montreal, and David Shepardson in Washington.