Boeing workers strike officially ends

(CLO) Boeing factory workers on the US West Coast accepted a new contract offer on Monday, ending a seven-week strike that halted most aircraft production.

The union said 59% of its members voted to approve the new contract, which includes a 38% pay raise over four years, taking pressure off new CEO Kelly Ortberg after two previous proposals were rejected. Boeing shares rose 1.7% in premarket trading Tuesday.

Boeing said the average annual salary for mechanics at the end of the new four-year contract will be $119,309 a year (before taxes), up from $75,608 a year previously. More than 26,000 union members voted, with turnout near 80%.

The pay raise will add $1.1 billion to the payroll, while each member will receive a $12,000 bonus, for a total of $396 million in bonuses, according to estimates from analysts at Jefferies.

Photo: Reuters

"This is a victory. We can hold our heads high," Jon Holden, the union's chief negotiator, told members after the results were announced. "Now it's time to get back to work."

The first strike in 16 years by Boeing's largest union has ended, bringing some welcome news to the airline after a tumultuous few days since the 737 MAX crash.

The strike by about 33,000 Boeing mechanics, who work on the 737 MAX, 767 and 777 aircraft, began on September 13. They are demanding a 40% pay raise and the restoration of a defined-benefit pension plan that was replaced by a 401(k) plan a decade ago.

The old pension scheme will not be restored, however the company will make additional contributions to employees' 401(k) plans to compensate for the change.

President Joe Biden and Acting Secretary of Labor Julie Su, who played a key role in facilitating the contract negotiations, expressed satisfaction with the outcome. President Biden emphasized the importance of collective bargaining in resolving labor disputes.

It will take Boeing weeks to ramp up production of the plane back to normal levels after the strike. Production of the 737 MAX is expected to drop to fewer than 10 planes a month in the coming months, far below the pre-strike target of 38.

The International Association of Machinists and Aerospace Workers (IAM) announced that workers can start returning to aircraft manufacturing plants from Wednesday. However, Boeing has said that some workers will need to be retrained due to the extended layoff.

Analysts estimate the strike has cost Boeing about $100 million in lost revenue each day. This has put a huge financial strain on the company, forcing Boeing to raise $24 billion from investors last week to maintain its investment grade credit rating.

Ha Trang (according to Reuters)

Source: https://www.congluan.vn/cuoc-dinh-cong-cua-cong-nhan-boeing-ket-thuc-tang-38-luong-post320167.html