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USAManufacturingLatest NewsIndustrial action / strikes

Boeing workers accept 38% pay deal

by Jo Faragher 5 Nov 2024
by Jo Faragher 5 Nov 2024 One of Boeing's key plants in Renton, Washington
VDB Photos / Shutterstock.com
One of Boeing's key plants in Renton, Washington
VDB Photos / Shutterstock.com

Striking workers at Boeing have accepted the latest pay deal which will see them get a 38% pay rise over the next four years.

Industrial action at the airport manufacturer began in September, with around 33,000 employees stopping work at plants in Washington. The workers had rejected a new contract presented to them that proposed raising wages by 25% over four years.

The original proposal included a commitment from the company to build its next commercial plane in the Seattle area. The International Association of Machinists and Aerospace Workers (IAM) was seeking reassurances around pension plans and working conditions.

Boeing pay deal

Boeing strike sees 33,000 workers down tools

Boeing workers on strike reject 35% pay rise 

The workers rejected a second offer on 24 October which would have seen them gain a 35% pay rise over the same period.

They will be able to return to their shifts from Weds 6 November, the union said. IAM reported that 59% of the striking workers voted in favour of the new deal, which includes a one-off $12,000 bonus and changes to their retirement plans.

The company has also recently announced plans to cut a tenth of its global workforce after reporting losses of $4 billion for the three months to the end of September. The launch of its 777X jet will be delayed until 2026, and production of 767 cargo planes will stop in 2027.

Chief executive Kelly Ortberg said: “While the past few months have been difficult for all of us, we are all part of the same team. There is much work ahead to return to the excellence that made Boeing an iconic company.”

The timing of the strike has also been momentous, with the US election due to take place today. Last month, US labor secretary Julie Su flew to Seattle to help with negotiations.

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Jo Faragher

Jo Faragher has been an employment and business journalist for 20 years. She regularly contributes to Personnel Today and writes features for a number of national business and membership magazines. Jo is also the author of 'Good Work, Great Technology', published in 2022 by Clink Street Publishing, charting the relationship between effective workplace technology and productive and happy employees. She won the Willis Towers Watson HR journalist of the year award in 2015 and has been highly commended twice.

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