SEATTLE 鈥 Factory workers at Boeing voted to accept and end after more than seven weeks, clearing the way for the aerospace giant to resume production of its bestselling airliner and generate much-needed cash.
Leaders of the International Association of Machinists and Aerospace Workers district in Seattle said 59% of members who cast ballots agreed to approve the company鈥檚 fourth formal offer and the third put to a vote. The deal includes over four years, and ratification and productivity bonuses.
However, Boeing refused to meet strikers鈥 demand to restore that was frozen nearly a decade ago.
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The contract鈥檚 ratification on the cleared the way for a major U.S. manufacturer and government contractor to restart Pacific Northwest assembly lines that the walkout idled for 53 days.
Bank of America analysts estimated last month that Boeing was losing about $50 million a day during the now-ended strike.
Boeing employees about 16,700 people in the 最新杏吧原创 region, mostly in its defense business. Workers here did not join the strike, but the whole company was affected by furloughs, job losses and other cost-cutting measures, officials said.
The company lost $2 billion on the T-7A, KC-46A, Commercial Crew and MQ-25 programs, according to a recent federal filing. The T-7A Red Hawk flight training system and MQ-25 Stingray aerial refueling drone are produced in the 最新杏吧原创 area.
As recently as June, Boeing officials announced that the company would build a manufacturing site for 鈥渁dvanced combat aircraft鈥 site at its north 最新杏吧原创 County complex, as part of a $1.8 billion expansion project.
Boeing said in a message to employees that he was pleased to have reached an agreement.
鈥淲hile the past few months have been difficult for all of us, we are all part of the same team,鈥 Ortberg said. 鈥淲e will only move forward by listening and working together. There is much work ahead to return to the excellence that made Boeing an iconic company.鈥
According to the union, the 33,000 workers it represents can return to work as soon as Wednesday or as late as Nov. 12. Ortberg has said it might take 鈥渁 couple of weeks鈥 to resume production in part because some workers might need retraining.
The average annual pay of Boeing machinists is currently $75,608 and eventually will rise to $119,309 under the new contract, according to the company. The union said the compounded value of the promised pay raise would amount to an increase of more than 43% over the life of the agreement.
鈥淚t鈥檚 time for us to come together. This is a victory,鈥 IAM District 751 President Jon Holden told members while announcing the tally late Monday. 鈥淵ou stood strong and you stood tall and you won.鈥
Reactions were mixed even among union members who voted to accept the contract.
Although she voted 鈥測es,鈥 Seattle-based calibration specialist Eep Bola帽o said the outcome was 鈥渕ost certainly not a victory.鈥 Bola帽o said she and her fellow workers made a wise but infuriating choice to accept the offer.
鈥淲e were threatened by a company that was crippled, dying, bleeding on the ground, and us as one of the biggest unions in the country couldn鈥檛 even extract two-thirds of our demands from them. This is humiliating,鈥 she said.
For other workers like William Gardiner, a lab lead in calibration services, the revised offer was a cause for celebration.
鈥淚鈥檓 extremely pumped over this vote,鈥 said Gardiner, who has worked for Boeing for 13 years. 鈥淲e didn鈥檛 fix everything 鈥 that鈥檚 OK. Overall, it鈥檚 a very positive contract.鈥
Union leaders had endorsed the latest proposal, saying they thought they had gotten all they could though negotiations and the strike. Along with the wage increase, the new contract gives each worker a $12,000 ratification bonus and retains a performance bonus the company wanted to eliminate.
鈥淚t is time for our members to lock in these gains and confidently declare victory,鈥 the local union district said before the vote. 鈥淲e believe asking members to stay on strike longer wouldn鈥檛 be right as we have achieved so much success.鈥
President Joe Biden congratulated the machinists and Boeing for coming to an agreement that he said supports fairness in the workplace and improves workers鈥 ability to retire with dignity. The contract, he said, is important for Boeing鈥檚 future as 鈥渁 critical part of America鈥檚 aerospace sector.鈥
Biden鈥檚 acting labor secretary, Julie Su, intervened in the negotiations several times, including when Boeing made its latest offer last week.
A continuing strike would have plunged Boeing into and uncertainty. Last month, Ortberg announced plans to and a to prevent the company鈥檚 credit rating from being cut to junk status.
Sept. 13 with an overwhelming 94.6% rejection of the company鈥檚 offer to raise pay by 25% over four years 鈥 far less than the union鈥檚 original demand for 40% wage increases over three years.
Machinists voted down another offer 鈥 35% raises over four years, and still no revival of pensions 鈥 on Oct. 23, the same day that Boeing reported a third-quarter .
The contract rejections reflected bitterness that built up after union concessions and small pay increases over the past decade.
The 鈥 the first strike by Boeing machinists since an eight-week walkout in 2008 鈥 was the latest setback in a volatile year for . The 2008 strike lasted eight weeks and cost the company about $100 million daily in deferred revenue. A 1995 strike lasted 10 weeks.
Boeing came under several this year after a door plug during an Alaska Airlines flight in January. Federal regulators put limits on Boeing airplane production that they said would last until they felt confident about at the company.
The door-plug incident renewed concerns about the safety of the 737 Max. Two of the planes had crashed less than five months apart in 2018 and 2019, killing 346 people. The CEO at the time, whose efforts to fix the company failed, announced in March that . In July, Boeing agreed to plead guilty to conspiracy to commit fraud for deceiving regulators who approved the 737 Max.