Boeing workers end 7-week strike on 38% pay rise deal

Boeing workers in the United States have recently made a significant decision that has ended a lengthy strike. After seven weeks of walking out, the workers voted to accept Boeing's latest pay offer. This new contract promises a substantial 38% pay increase over the next four years, which is a considerable raise for the employees. The International Association of Machinists and Aerospace Workers, known as IAM, announced that the striking workers could begin returning to their jobs as early as Wednesday or by November 12 at the latest. The strike, which began on September 13, involved around 30,000 workers and caused a major slowdown in production at Boeing's factories, leading to a crisis for the company. According to IAM, 59% of the workers who participated in the strike voted in favor of the new agreement. This deal also includes a one-time bonus of $12,000, equivalent to about £9,300, along with modifications to the workers' retirement plans. Union leader Jon Holden expressed pride in the outcome, stating, 'Through this victory and the strike that made it possible, IAM members have taken a stand for respect and fair wages in the workplace. ' Initially, the union had requested a 40% pay increase, but the final agreement was still a significant improvement. Boeing's chief executive, Kelly Ortberg, acknowledged the challenges faced during the past few months, saying, 'While the past few months have been difficult for all of us, we are all part of the same team. ' He emphasized that there is still much work to be done to restore Boeing's reputation as a leading company in the aviation industry. The strike was taken very seriously, even by the White House. Acting US Labor Secretary Julie Su traveled to Seattle last month to assist in the negotiations between the workers and Boeing. The company has been struggling financially and was eager to resolve the strike, which has cost them nearly $10 billion. According to the consulting firm Anderson Economic Group, Boeing's commercial aircraft division reported operating losses of $4 billion for the three months ending in September. In an effort to raise funds, Boeing recently launched a share sale to generate over $20 billion. This move came after warnings that a prolonged strike could lead to downgrades in Boeing's credit rating, making it more expensive for the company to borrow money. Additionally, Boeing announced that they might have to issue redundancy notices to some employees, with the first notices expected to be sent out in mid-November. The current crisis at Boeing began in January when a piece of one of its passenger planes broke apart during a flight. The company's space division also faced setbacks when its Starliner vessel was forced to return to Earth without carrying any astronauts, further damaging its reputation.