Members of the International Association of Machinists and Aerospace Workers District 751 celebrated in Seattle on Nov. 4, 2024, after voting to approve a new contract with Boeing, effectively ending a strike that lasted more than seven weeks. This strike had significantly disrupted the company's aircraft production, which was already facing significant financial challenges.
The contract received the approval of 59% of union members and includes a significant 38% wage increase over the next four years, along with various other improvements to worker benefits. This deal represents a crucial relief for Boeing's new CEO, Kelly Ortberg, who took the job in August during a tumultuous period marked by safety and production problems. Recently, the company raised more than $20 billion through a stock sale to address its financial headwinds and warned investors of expected cash burn through 2025.
With the ratification of the contract, Boeing can resume production, which is vital to its recovery, especially since much of the revenue from the sale of the planes is generated upon delivery to customers. Ortberg emphasized unity and collaboration in his speech after signing the contract, saying: “Even though the last few months have been difficult for all of us, we are all part of the same team. We will only move forward by listening and working together. There is much work to be done to return to the excellence that made Boeing an iconic company.”
President Joe Biden praised both the union and Boeing for reaching the agreement, acknowledging the company's role as one of the largest exporters to the United States. Acting Labor Secretary Julie Su also played a role in the negotiations, facilitating discussions between the two sides. In a statement, Biden highlighted the contract's provisions, which not only include significant pay increases but also improvements to retirement benefits and workplace equity. “This contract is also important to Boeing's future as a key part of the American aerospace industry,” he added.
This vote was the third attempt by machinists to get a satisfactory deal since the strike began in September, when about 33,000 workers, mostly from the Seattle area, walked off the job after rejecting an initial proposal. The first offer called for a 25% pay increase, well below the 40% increase requested by the union. A subsequent proposal was also rejected before the current agreement was reached.
Jon Holden, president of District 751, expressed pride in the achievement, saying, “This is a victory. We can hold our heads high.” According to the union's announcement, machinists producing popular plane models such as the 737 Max, 777 and 767 are expected to return to work by Nov. 12 at the latest, with some potentially resuming as early as Wednesday.
Under the terms of the new contract, machinist salaries are expected to average $119,309 by the end of the agreement. The initial salary increase will be 13%, with additional benefits including increased 401(k) contributions and a signing bonus of up to $12,000, or an alternative of a $7,000 bonus along with a 401(k) contribution of $5,000.
The union had previously highlighted the rising cost of living in the Seattle area, where most of Boeing's planes are made, as a significant concern for workers. They also indicated that the latest agreement may represent the best possible outcome given the current negotiating climate. “In every negotiation and strike, there is a point where we have gotten everything we can by negotiating and keeping our jobs,” the union said. “We are at that point now and we risk regressing or reducing supply in the future.”
