Boeing machinists end strike, approve labor contract with 38% wage hikes

Boeing machinists approved a new labor deal Monday, ending a more than seven-week strike that halted most of the aircraft production at the company that was already struggling with mounting losses.

Machinists voted 59% in favor of the new contract, which includes 38% wage increases over four years and other improvements.

The approval is a relief for Boeing’s new CEO Kelly Ortberg, who took the top job in August to steer the company through its safety and manufacturing crises. The company raised more than $20 billion in a share sale last week to weather its financial problems after warning it will likely burn cash through 2025.

Boeing will now be able to resume prodution, key to its recovery since the bulk of the aircraft price is paid when they are handed over to customers.

“While the past 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,” Ortberg said after the contract passed. “There is much work ahead to return to the excellence that made Boeing an iconic company.”

President Joe Biden congratulated the union and the company — one of the country’s top exporters — on reaching the deal. Acting Labor Secretary Julie Su had gotten involved with the negotiations, meeting with both sides.

“This contract provides a 38% wage increase over four years, improves workers’ ability to retire with dignity, and supports fairness at the workplace,” Biden said in a statement. “This contract is also important for Boeing’s future as a critical part of America’s aerospace sector.”

It was the machinists’ third vote since September, when the 33,000 workers, mostly in the Seattle area, walked off the job after overwhelmingly rejecting a proposal promising a 25% raise, far short of the 40% the union sought. They voted down another sweetened proposal late last month.

“This is a victory. We can hold our heads high,” said International Association of Machinists and Aerospace Workers District 751 President Jon Holden as he announced the results late Monday.

The machinists, who build planes such as the bestselling 737 Max, 777 and 767 aircraft must return to their jobs no later than Nov. 12 the union said. They could return as early as Wednesday.

Boeing said machinist pay will average $119,309 at the end of this contract proposal. The first wage increase will be 13%. The contract also increases 401(k) contributions and a signing…