59% of Boeing machinists vote to accept company's latest contract offer, ending strike
Boeing machinists agree to new contract, ending weeks-long strike
Nov. 4, 2024
UPI
The Boeing logo hangs from the Boeing Building, international headquarters in Chicago on March 31, 2011. One of Boeing's key unions voted to approve a new contract on Monday. File Photo by Brian Kersey/UPI | License Photo
Nov. 4 (UPI) -- Tens of thousands of striking Boeing machinists voted Monday to ratify a new contract, ending their seven-week work stoppage.
In a statement, the International Association of Machinists and Aerospace Workers union said its members approved to ratify the contract by 59%.
Workers can return to work as early as the first shift Wednesday, it said.
"Working people know what it's like when a company overreaches and takes away more than is fair," Jon Holden, president of IAM District 751, and Brandon Bryant, president of IAM District W24, said in a joint statement.
Related
Nov. 4, 2024
UPI
The Boeing logo hangs from the Boeing Building, international headquarters in Chicago on March 31, 2011. One of Boeing's key unions voted to approve a new contract on Monday. File Photo by Brian Kersey/UPI | License Photo
Nov. 4 (UPI) -- Tens of thousands of striking Boeing machinists voted Monday to ratify a new contract, ending their seven-week work stoppage.
In a statement, the International Association of Machinists and Aerospace Workers union said its members approved to ratify the contract by 59%.
Workers can return to work as early as the first shift Wednesday, it said.
"Working people know what it's like when a company overreaches and takes away more than is fair," Jon Holden, president of IAM District 751, and Brandon Bryant, president of IAM District W24, said in a joint statement.
Related
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"Through this strike and the resulting victory, frontline workers at Boeing have done their part to begin rebalancing the scales in favor of the middle class -- and in doing so, we hope to inspire other workers in our industry and beyond to continue standing up for justice at work."
The contract includes a 38% pay increase over the course of the four-year contract but does not include the pension change the union had demanded.
The pay increase is better than the 25% the union turned down before going on strike nearly two months ago, but only slightly better than the 35% the 33,000-member union had turned down in the last vote on Oct. 24.
"This agreement represents a new standard in the aerospace industry -- one that sends a clear statement that aerospace jobs must be middle class careers in which workers can thrive," Brian Bryant, IAM international president, said late Monday following the vote.
"This agreement reflects the positive results of workers sticking together, participating in workplace democracy and demonstrating solidarity with each other and with the community during a necessary and effective strike."
Members voted through 7 p.m. PST on Monday, with the announcement of the tally made late Monday night.
Pro-union President Joe Biden issued a statement congratulating both sides on "coming to an agreement that reflects the hard work and sacrifices" made by the workers.
"Over the last four years, we've shown collective bargaining works. Good contracts benefit workers, businesses and consumers -- and are key to growing the American economy from the middle out and the bottom up," he said.
The machinist's average pay, according to Boeing, will be $119,309 by the end of the offered contract. Many of the union workers in the Seattle area, where most of the airplanes are made, had complained about inflation and the rising cost of living in the area.
Rep. Pramila Jayapal, a Democrat who represents Washington's 7th District, which includes most of Seattle, had voiced support for the striking during the work stoppage.
Following the announcement late Monday, she remarked in a statement on Boeing's history on building the middle class in her city and how this contract "is a promising sign that the new leadership is committed to returning to that role as a business that is contributing to our region, state and country's well-being for current and future generations."
The strike crippled Boeing's union factories.
The plant closures because of the strike left hundreds of Spirit AeroSystems employees furloughed while Boeing has laid off 17,000 others. It has also delayed the debut of its 777X widebody airplane until 2026.
Boeing to lay off 17,000 workers, delay 777X rollout amid machinists strike
Hundreds of Spirit AeroSystems employees furloughed amid Boeing strike
"Through this strike and the resulting victory, frontline workers at Boeing have done their part to begin rebalancing the scales in favor of the middle class -- and in doing so, we hope to inspire other workers in our industry and beyond to continue standing up for justice at work."
The contract includes a 38% pay increase over the course of the four-year contract but does not include the pension change the union had demanded.
The pay increase is better than the 25% the union turned down before going on strike nearly two months ago, but only slightly better than the 35% the 33,000-member union had turned down in the last vote on Oct. 24.
"This agreement represents a new standard in the aerospace industry -- one that sends a clear statement that aerospace jobs must be middle class careers in which workers can thrive," Brian Bryant, IAM international president, said late Monday following the vote.
"This agreement reflects the positive results of workers sticking together, participating in workplace democracy and demonstrating solidarity with each other and with the community during a necessary and effective strike."
Members voted through 7 p.m. PST on Monday, with the announcement of the tally made late Monday night.
Pro-union President Joe Biden issued a statement congratulating both sides on "coming to an agreement that reflects the hard work and sacrifices" made by the workers.
"Over the last four years, we've shown collective bargaining works. Good contracts benefit workers, businesses and consumers -- and are key to growing the American economy from the middle out and the bottom up," he said.
The machinist's average pay, according to Boeing, will be $119,309 by the end of the offered contract. Many of the union workers in the Seattle area, where most of the airplanes are made, had complained about inflation and the rising cost of living in the area.
Rep. Pramila Jayapal, a Democrat who represents Washington's 7th District, which includes most of Seattle, had voiced support for the striking during the work stoppage.
Following the announcement late Monday, she remarked in a statement on Boeing's history on building the middle class in her city and how this contract "is a promising sign that the new leadership is committed to returning to that role as a business that is contributing to our region, state and country's well-being for current and future generations."
The strike crippled Boeing's union factories.
The plant closures because of the strike left hundreds of Spirit AeroSystems employees furloughed while Boeing has laid off 17,000 others. It has also delayed the debut of its 777X widebody airplane until 2026.
By AFP
November 5, 2024
People look on as the Boeing Machinist union tallies votes on the latest Boeing contract offer at the District Lodge 751 Union Hall in Seattle, Washington on November 4, 2024 - Copyright AFP Jason Redmond
Jason REDMOND with John BIERS in New York
Striking workers at Boeing approved a new contract proposal on Monday, ending a more than seven-week stoppage that had cost the beleaguered aviation giant billions.
The International Association of Machinists and Aerospace Workers (IAM) District 751 said it had ratified the offer by a vote of 59 percent after rejecting two prior offers.
The move will send some 33,000 Seattle-area employees back to work and restore operations at two major assembly plants at a time when Boeing is trying to recover from multiple setbacks.
The contract includes a 38 percent wage hike, a $12,000 signing bonus and provisions to lift employer contributions to a 401K retirement plan and contain health care costs.
But the contract does not restore Boeing’s former pension plan that had been sought by older workers.
Jon Holden, head of the Seattle union, described the agreement as a win for workers who were determined to make up for more than a decade of stagnant wages from prior negotiations that had enraged many rank-and-file workers.
“The strike will end and now it’s our job to get back to work and start building the airplanes, increase the rates and bring this company back to financial success,” Holden said at a news conference.
Holden described the contract as “rebalancing the scales in favor of the middle class” after earlier concessions to the company, according to an IAM press release.
Boeing CEO Kelly Ortberg welcomed the ratification, adding that management and workers must work together as “part of the same team,” according to a statement released by the company.
“We will only move forward by listening and working together,” Ortberg said. “There is much work ahead to return to the excellence that made Boeing an iconic company.”
The news was also cheered by President Joe Biden, who congratulated the union on the wage hike and provisions that “improves workers’ ability to retire with dignity,” according to a statement released by the White House.
“Good contracts benefit workers, businesses, and consumers — and are key to growing the American economy from the middle out and the bottom up,” Biden said.
Boeing staff can return as soon as November 6 and must be back on the job by November 12, the IAM said on social media platform X.
– Turnaround mode –
The strike had exacerbated Boeing’s already precarious outlook after a January incident in which a fuselage panel blew out mid-flight on a 737 MAX operated by Alaska Airlines.
There were no major injuries, but the episode plunged Boeing back into crisis after two earlier fatal MAX crashes, with US air safety regulators limiting production output until the company got its house in order.
In March, Boeing announced a management shakeup that included the exit of CEO Dave Calhoun, who was replaced in August by former Rockwell Collins chief Ortberg.
Ortberg has cautioned that a turnaround at Boeing would take time given travails that also include major cost management problems in defense contracts and problem-filled space missions.
In October, as Boeing reported a whopping $6.2 billion quarterly loss, Ortberg described the need for a “fundamental culture change” at Boeing and said he was reviewing the company’s portfolio with an eye towards shrinking its mission in order to restore excellence.
Bu the IAM strike had threatened turnaround efforts under the new CEO.
Jo-Ellen Pozner, an associate professor at Santa Clara University’s business school, had warned ahead of the vote that another rejection by IAM workers could have plunged the company into deeper crisis.
But with the contract now ratified, “there is a way forward,” she said.
The IAM strike had been driven by worker exasperation after more than a decade of near stagnant pay — a problem exacerbated by higher inflation in recent years and higher living costs in the Seattle region, a growing tech hub.
The strike recently surpassed the 2023 United Auto Workers strike against Detroit carmakers to become the costliest in the 21st Century, according to Anderson Economic Group, which estimated the total economic hit at $11.6 billion.
Striking workers at Boeing approved a new contract proposal on Monday, ending a more than seven-week stoppage that had cost the beleaguered aviation giant billions.
The International Association of Machinists and Aerospace Workers (IAM) District 751 said it had ratified the offer by a vote of 59 percent after rejecting two prior offers.
The move will send some 33,000 Seattle-area employees back to work and restore operations at two major assembly plants at a time when Boeing is trying to recover from multiple setbacks.
The contract includes a 38 percent wage hike, a $12,000 signing bonus and provisions to lift employer contributions to a 401K retirement plan and contain health care costs.
But the contract does not restore Boeing’s former pension plan that had been sought by older workers.
Jon Holden, head of the Seattle union, described the agreement as a win for workers who were determined to make up for more than a decade of stagnant wages from prior negotiations that had enraged many rank-and-file workers.
“The strike will end and now it’s our job to get back to work and start building the airplanes, increase the rates and bring this company back to financial success,” Holden said at a news conference.
Holden described the contract as “rebalancing the scales in favor of the middle class” after earlier concessions to the company, according to an IAM press release.
Boeing CEO Kelly Ortberg welcomed the ratification, adding that management and workers must work together as “part of the same team,” according to a statement released by the company.
“We will only move forward by listening and working together,” Ortberg said. “There is much work ahead to return to the excellence that made Boeing an iconic company.”
The news was also cheered by President Joe Biden, who congratulated the union on the wage hike and provisions that “improves workers’ ability to retire with dignity,” according to a statement released by the White House.
“Good contracts benefit workers, businesses, and consumers — and are key to growing the American economy from the middle out and the bottom up,” Biden said.
Boeing staff can return as soon as November 6 and must be back on the job by November 12, the IAM said on social media platform X.
– Turnaround mode –
The strike had exacerbated Boeing’s already precarious outlook after a January incident in which a fuselage panel blew out mid-flight on a 737 MAX operated by Alaska Airlines.
There were no major injuries, but the episode plunged Boeing back into crisis after two earlier fatal MAX crashes, with US air safety regulators limiting production output until the company got its house in order.
In March, Boeing announced a management shakeup that included the exit of CEO Dave Calhoun, who was replaced in August by former Rockwell Collins chief Ortberg.
Ortberg has cautioned that a turnaround at Boeing would take time given travails that also include major cost management problems in defense contracts and problem-filled space missions.
In October, as Boeing reported a whopping $6.2 billion quarterly loss, Ortberg described the need for a “fundamental culture change” at Boeing and said he was reviewing the company’s portfolio with an eye towards shrinking its mission in order to restore excellence.
Bu the IAM strike had threatened turnaround efforts under the new CEO.
Jo-Ellen Pozner, an associate professor at Santa Clara University’s business school, had warned ahead of the vote that another rejection by IAM workers could have plunged the company into deeper crisis.
But with the contract now ratified, “there is a way forward,” she said.
The IAM strike had been driven by worker exasperation after more than a decade of near stagnant pay — a problem exacerbated by higher inflation in recent years and higher living costs in the Seattle region, a growing tech hub.
The strike recently surpassed the 2023 United Auto Workers strike against Detroit carmakers to become the costliest in the 21st Century, according to Anderson Economic Group, which estimated the total economic hit at $11.6 billion.
Boeing factory strike ends as workers vote to accept contract
A strike by 33,000 Boeing factory workers is coming to an end. Union machinists voted on Monday to accept the company’s latest contract offer, which includes a 38% pay raise over four years.
IAM District 751 president Jon Holden greets union members after announcing they voted to accept a new contract offer from Boeing, Monday, Nov. 4, 2024, at their union hall in Seattle. (AP Photo/Lindsey Wasson)
Joe Perry, who has worked for Boeing for 38 years, waits for the results of the union vote on a new contract offer from Boeing, Monday, Nov. 4, 2024, at IAM District 751 Union Hall in Seattle. (AP Photo/Lindsey Wasson)
A volunteer sorts votes on a new contract offer from Boeing, Monday, Nov. 4, 2024, at the IAM District 751 Union Hall in Seattle. (AP Photo/Lindsey Wasson)
BY DAVID KOENIG, LINDSEY WASSON AND HANNAH SCHOENBAUM
November 5, 2024
SEATTLE (AP) — Factory workers at Boeing voted to accept a contract offer and end their strike after more than seven weeks, clearing the way for the aerospace giant to resume production of its bestselling airliner and generate much-needed cash.
Leaders of the International Association of Machinists and Aerospace Workers 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 a 38% wage increase 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 cleared the way for a major U.S. manufacturer and government contractor to restart Pacific Northwest assembly lines that the walkout idled for 53 days.
Bank of America analysts estimated last month that Boeing was losing about $50 million a day during the now-ended strike, which did not affect a nonunion plant in South Carolina where the company makes 787s.
Boeing CEO Kelly Ortberg said in a message to employees that he was pleased to have reached an agreement.
Boeing machinists vote on contract to end 7-week strike
Boeing union workers will stay on picket lines after voting against latest offer
Boeing factory workers reject contract, prolong six-week strike
“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. Ortberg has said it might take “a couple of weeks” to resume production in part because some workers might 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. The union said the compounded value of the promised pay raise would amount to an increase of more than 43% over the life of the agreement.
“It’s time for us to come together. This is a victory,” IAM District 751 President Jon Holden told members while announcing the tally late Monday. “You stood strong and you stood tall and you won.”
Reactions were mixed even among union members who voted to accept the contract.
Although she voted “yes,” Seattle-based calibration specialist Eep Bolaño said the outcome was “most certainly not a victory.” Bolaño 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 us 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 in calibration services, the revised offer 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.”
Union leaders had endorsed the latest proposal, saying they thought they had gotten all they could though negotiations and the strike. Along with the wage increase, the new contract gives each worker a $12,000 ratification bonus and retains a performance bonus the company wanted to eliminate.
“It is time for our members to lock in these gains and confidently declare victory,” the local 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.”
Biden’s acting labor secretary, Julie Su, intervened in the negotiations several times, including when Boeing made its latest offer last week.
A continuing strike would have plunged Boeing into further financial peril and uncertainty. Last month, Ortberg announced plans to lay off about 17,000 people and a stock sale to prevent the company’s credit rating from being cut to junk status.
The strike began Sept. 13 with an overwhelming 94.6% rejection of the company’s offer to raise pay by 25% over four years — far less than the union’s original demand for 40% wage increases over three years.
Machinists voted down another offer — 35% raises over four years, and still no revival of pensions — on Oct. 23, the same day that Boeing reported a third-quarter loss of more than $6 billion.
The contract rejections reflected bitterness that built up after union concessions and small pay increases over the past decade.
The labor standoff — the first strike by Boeing machinists since an eight-week walkout in 2008 — was the latest setback in a volatile year for the aerospace giant. The 2008 strike lasted eight weeks and cost the company about $100 million daily in deferred revenue. A 1995 strike lasted 10 weeks.
Boeing came under several federal investigations this year after a door plug blew off a 737 Max plane during an Alaska Airlines flight in January. Federal regulators put limits on Boeing airplane production that they said would last until they felt confident about manufacturing safety at the company.
The door-plug incident renewed concerns about the safety of the 737 Max. Two of the planes had crashed less than five months apart in 2018 and 2019, killing 346 people. The CEO at the time, whose efforts to fix the company failed, announced in March that he would step down. In July, Boeing agreed to plead guilty to conspiracy to commit fraud for deceiving regulators who approved the 737 Max.
Washington Gov. Jay Inslee said Monday’s vote puts Boeing’s future back on more solid footing.
“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 said in a statement congratulating the workers.
A strike by 33,000 Boeing factory workers is coming to an end. Union machinists voted on Monday to accept the company’s latest contract offer, which includes a 38% pay raise over four years.
IAM District 751 president Jon Holden greets union members after announcing they voted to accept a new contract offer from Boeing, Monday, Nov. 4, 2024, at their union hall in Seattle. (AP Photo/Lindsey Wasson)
Joe Perry, who has worked for Boeing for 38 years, waits for the results of the union vote on a new contract offer from Boeing, Monday, Nov. 4, 2024, at IAM District 751 Union Hall in Seattle. (AP Photo/Lindsey Wasson)
A volunteer sorts votes on a new contract offer from Boeing, Monday, Nov. 4, 2024, at the IAM District 751 Union Hall in Seattle. (AP Photo/Lindsey Wasson)
BY DAVID KOENIG, LINDSEY WASSON AND HANNAH SCHOENBAUM
November 5, 2024
SEATTLE (AP) — Factory workers at Boeing voted to accept a contract offer and end their strike after more than seven weeks, clearing the way for the aerospace giant to resume production of its bestselling airliner and generate much-needed cash.
Leaders of the International Association of Machinists and Aerospace Workers 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 a 38% wage increase 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 cleared the way for a major U.S. manufacturer and government contractor to restart Pacific Northwest assembly lines that the walkout idled for 53 days.
Bank of America analysts estimated last month that Boeing was losing about $50 million a day during the now-ended strike, which did not affect a nonunion plant in South Carolina where the company makes 787s.
Boeing CEO Kelly Ortberg said in a message to employees that he was pleased to have reached an agreement.
Boeing machinists vote on contract to end 7-week strike
Boeing union workers will stay on picket lines after voting against latest offer
Boeing factory workers reject contract, prolong six-week strike
“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. Ortberg has said it might take “a couple of weeks” to resume production in part because some workers might 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. The union said the compounded value of the promised pay raise would amount to an increase of more than 43% over the life of the agreement.
“It’s time for us to come together. This is a victory,” IAM District 751 President Jon Holden told members while announcing the tally late Monday. “You stood strong and you stood tall and you won.”
Reactions were mixed even among union members who voted to accept the contract.
Although she voted “yes,” Seattle-based calibration specialist Eep Bolaño said the outcome was “most certainly not a victory.” Bolaño 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 us 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 in calibration services, the revised offer 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.”
Union leaders had endorsed the latest proposal, saying they thought they had gotten all they could though negotiations and the strike. Along with the wage increase, the new contract gives each worker a $12,000 ratification bonus and retains a performance bonus the company wanted to eliminate.
“It is time for our members to lock in these gains and confidently declare victory,” the local 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.”
Biden’s acting labor secretary, Julie Su, intervened in the negotiations several times, including when Boeing made its latest offer last week.
A continuing strike would have plunged Boeing into further financial peril and uncertainty. Last month, Ortberg announced plans to lay off about 17,000 people and a stock sale to prevent the company’s credit rating from being cut to junk status.
The strike began Sept. 13 with an overwhelming 94.6% rejection of the company’s offer to raise pay by 25% over four years — far less than the union’s original demand for 40% wage increases over three years.
Machinists voted down another offer — 35% raises over four years, and still no revival of pensions — on Oct. 23, the same day that Boeing reported a third-quarter loss of more than $6 billion.
The contract rejections reflected bitterness that built up after union concessions and small pay increases over the past decade.
The labor standoff — the first strike by Boeing machinists since an eight-week walkout in 2008 — was the latest setback in a volatile year for the aerospace giant. The 2008 strike lasted eight weeks and cost the company about $100 million daily in deferred revenue. A 1995 strike lasted 10 weeks.
Boeing came under several federal investigations this year after a door plug blew off a 737 Max plane during an Alaska Airlines flight in January. Federal regulators put limits on Boeing airplane production that they said would last until they felt confident about manufacturing safety at the company.
The door-plug incident renewed concerns about the safety of the 737 Max. Two of the planes had crashed less than five months apart in 2018 and 2019, killing 346 people. The CEO at the time, whose efforts to fix the company failed, announced in March that he would step down. In July, Boeing agreed to plead guilty to conspiracy to commit fraud for deceiving regulators who approved the 737 Max.
Washington Gov. Jay Inslee said Monday’s vote puts Boeing’s future back on more solid footing.
“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 said in a statement congratulating the workers.
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