Boeing strike ends as 59% workers vote for wage deal

Boeing workers at the plane maker’s US West Coast facilities have voted in favour of a new contract that offers 38 per cent rise in wages over the next four years.

With 59 per cent of the striking workers voting in favour of the contract, the 7-week-long strike ended, allowing the troubled plane maker restart production in full swing.

Under the deal, workers would receive a 35 per cent increase in pay over four years, a $7,000 ratification bonus and enhanced workers' retirement plans, including a one-time payment of $5,000 and up to 12 per cent in employer contributions.

The union has been demanding a 40 per cent increase in wages and restoration of a defined-benefit pension plan.

The current deal also does not seem to have wider support from workers as 41 per cent of workers are not satisfied with the offer.

The new deal was arrived at after the 33,000 workers affiliated to the International Association of Machinists and Aerospace Workers at Boeing’s Seattle and Portland factories went on strike on 12 September, rejecting a deal that offered a 25 per cent salary increase besides a $3,000 signing bonus. Nearly 95 per cent of the unionised workers had rejected the deal outright.

The first strike by Boeing workers in 16 years virtually halted production at the troubled plane maker, adding to its financial and safety woes.

The strike affected production of some of Boeing’s best-selling aircraft, including the 737 MAX, as well as the 767 and 777 wide-bodies.

Boeing, however, will require weeks to return to pre-strike production schedule, especially that of its 737 MAX. This means even more time to improve cash flow.