Boeing Union approves new contract, ending expensive strike

On November 4, 2024, members of Boeing’s largest union, the International Association of Machinists and Aerospace Workers, approved a new contract by a 59% vote, ending a nearly two-month strike involving 33,000 workers. The strike, which began on September 13, 2024, had led to at least $5.5 billion in lost earnings for Boeing and caused a broader economic impact of over $9.6 billion.

The new four-year contract includes a cumulative 43% wage increase, a $12,000 ratification bonus, improved retirement benefits, and a commitment from Boeing to manufacture its next commercial aircraft in Seattle. The union had previously rejected two offers, which fell short on wages and benefits.

Boeing CEO Kelly Ortberg, who recently joined the company and announced plans to reduce Boeing’s workforce by 10%, expressed relief at reaching an agreement, emphasizing teamwork moving forward.

The White House closely monitored the negotiations, with Acting Labor Secretary Julie Su playing a key role in facilitating discussions. President Biden praised the resolution, noting the mutual benefits of strong labour agreements.

This strike echoed Boeing’s 2008 strike, which led to significant revenue losses and extended negotiations in Seattle. The approval of the new contract will allow Boeing to address ongoing production issues, particularly with the 737 MAX, and refocus on stabilising its business and reputation.