Boeing workers vote on new wage deal to end seven-week strike

Boeing’s US West Coast factory workers are voting on a revised contract offer that could end a seven-week strike, which has disrupted production of key aircraft like the 737 MAX as detailed in a report by Reuters.

The vote, taking place, follows weeks of negotiations. The company is offering an improved 38 per centwage increase over four years, up from an earlier proposal of 35 per centthat was rejected by the majority of the 33,000 machinists who walked off the job on September 13, the Reuters report elaborated further.

Boeing's financial challenges remain

The new offer comes at a critical time for Boeing, which has been struggling financially due to the strike and its impact on production. Last week, the company announced a $24 billion share offering to help stabilise its finances the Reuters report detailed further.

Boeing’s shares gained 0.3 per cent on November 5, reflecting some investor optimism. If the contract passes, workers could return to their jobs as early as Wednesday, but no later than November 12, according to theInternational Association of Machinists and Aerospace Workers.

Brandon Bryant, president of IAM District W24 in Oregon, noted that many workers are eager to return to production. "They think this is a good contract. It’s a great step forward," Bryant said, acknowledging that while the deal may not resolve all the issues, it lays a solid foundation for future improvements.

While the deal represents a significant pay increase, it may still not satisfy all workers. Some, like machine operator Jeffrey Dodge, have expressed dissatisfaction with the deal, saying it doesn’t fully compensate for years of stagnating wages and the loss of a defined-benefit pension. Dodge, who also works a side job to make ends meet, is among those voting against the agreement, along with others in the Seattle-area Renton plant where 737 wings are produced.

Boeing has said the new contract would bring machinists' average annual pay to about $119,000 by the end of the four years, up from $75,000. While this increase is seen as a positive step for many workers, others feel it’s not enough to make up for a decade of wage stagnation and inflation.

The union has endorsed the latest offer, with IAM District 751 President Jon Holden warning that a rejection could lead to an even worse deal from Boeing. Workers are divided on the offer, with some seeing the 38 per centraise as a fair deal, while others remain determined to push for a 40 per centincrease that they initially demanded.

If the deal is approved, it would help restore production of Boeing’s most important jets, including the 737 MAX, which has been a major revenue driver for the company. However, analysts expect that, the strike’s impact on production could push back Boeing’s target to produce 38 jets per month by the end of 2024.

Beyond Boeing’s internal challenges, the strike has had wider ramifications. Aerospace suppliers have been forced to furlough workers, and airlines are facing delays in receiving their aircraft. A positive outcome for Boeing could bring some relief to these sectors as well.

The contract’s outcome also represents a pivotal moment for Boeing’s CEO, Kelly Ortberg, who took over the company in August. Ortberg has promised to repair the strained relationship with workers and bring about a cultural shift at the company, which has faced a series of setbacks since the 737 MAX crisis earlier this year.

In the coming days, the results of the vote will reveal whether Boeing’s workers are ready to end the strike and resume their critical role in the company’s recovery.