- Boeing workers finally agree to a new wage offer
- Workers' union wins, but Boeing's crisis continues
- The White House and the impact of the strike on the US economy
- Looking ahead: challenges at Boeing
Boeing workers finally agree to a new wage offer
This ends a seven-week strike that has paralysed one of the world's largest aircraft manufacturers. In a vote by the International Association of Machinists and Aerospace Workers (IAM), 59% of the union's members voted in favor of Boeing's offer—a contract that will guarantee a 38% pay rise over the next four years, plus a one-off payment of €12,000. The company will receive a bonus of USD 1,000.
The strike of some 30 000 workers, which began on 13 September, has had serious consequences for production and has exacerbated Boeing's financial difficulties. During these weeks, the company's factories have experienced significant slowdowns and losses estimated by the consultancy firm Anderson Economic Group at almost USD 10 billion.
Workers' union wins, but Boeing's crisis continues
IAM leader Jon Holden said the strike was a crucial step in the fight for fair pay and respect for workers.
"This victory proves that our members are ready to stand up for their rights and values at work," Holden said.
However, these negotiations have not been easy for Boeing: the company initially offered only a 35% wage increase, which workers rejected. The company's CEO Kelly Ortberg stressed that the events of the last few months have been a challenge for the whole team, but also reminded them that "we are all on the same team, striving to return Boeing to a position of leadership".
The White House and the impact of the strike on the US economy
The strike has also attracted the attention of the US government, with interim US Labour Secretary Julie Su flying to Seattle in September to contribute to the negotiating process and help defuse tensions.
As Boeing's financial losses mounted, the company also announced job cuts: in October, it announced plans to lay off around 17,000 people, with the first layoff notices expected to reach employees in mid-November.
Looking ahead: challenges at Boeing
In addition to production and financial problems, Boeing is also facing reputational blows, with the aircraft manufacturer dealing with technical failures since January. The company's commercial division posted losses of $4 billion in the third quarter and the prolonged strike also threatened the company's credit rating, making it more expensive for Boeing to borrow money.
"Boeing's management has also initiated a partial sale of some of its shares to raise capital and secure funds for going concern.
The company's employees plan to return to work on Wednesday or 12 November, ending a seven-week break.
