Boeing’s largest union, the International Association of Machinists and Aerospace Workers (IAM), voted on Monday to approve a new contract, ending a weeks-long strike that had severely impacted the aerospace giant’s finances. The vote saw 59% of union members supporting the deal, marking a breakthrough after two previous contract offers had been rejected. The contract will see about 33,000 Boeing workers, mostly in the Seattle area, returning to work by November 12, following the strike that began on September 13.
The four-year contract agreement includes significant benefits for workers, including a cumulative 43% wage increase—an improvement over the 27% initially proposed. Workers will also receive a $12,000 ratification bonus, quadruple the initial offer, alongside enhanced retirement benefits. Boeing has committed to building its next commercial airplane in the Seattle region, a first-time pledge that union leaders like Jon Holden, president of District 751, consider a major win for the union. “This is a victory,” Holden said, expressing pride in the union members who “stood strong” throughout the challenging negotiations.
Boeing, still recovering from past setbacks, also faces financial challenges, reporting a $6.1 billion loss for the three months ending in September. The strike exacerbated this, costing the company an estimated $5.5 billion, with total economic fallout, including suppliers and customers, exceeding $9.6 billion, according to the Anderson Economic Group.
The financial toll of this strike is one of the highest in recent history, paralleling the scale of the General Motors walkout in 1998 and the UPS strike in 1997. To mitigate losses, Boeing temporarily furloughed thousands of employees and cut spending, while some suppliers also paused operations.
The contract replaces a 2008 agreement, which had undergone multiple modifications over the years. The previous strike in 2008 led to Boeing’s delivery of 104 fewer planes, resulting in a $6.4 billion revenue loss. This time, concerns about Boeing’s reputation were heightened by lingering doubts about the safety of the 737 Max following a panel blowout earlier this year. Production of the Max, accounting for 75% of Boeing’s orders, remains under scrutiny, with the FAA limiting output to 38 planes per month.
For Boeing’s newly appointed CEO, Kelly Ortberg, this contract signals a potential turning point as he works to restore trust in the company. With plans to cut 17,000 jobs globally and raise over $21 billion through share sales to shore up finances, Ortberg hopes this agreement will stabilize Boeing’s workforce and rebuild confidence in the brand.