Boeing’s factory workers finally ended their strike after accepting a new contract offer from the company on Monday. The company’s machinists on its US West Coast factory were involved in a strike which lasted for seven weeks that impacted the production of its aircraft and created a financial crisis for the manufacturer.
The machinists’ union said that members voted in majority by 59 per cent in support of the new contract which gives workers a 38 per cent pay hike spread over four years, reported Reuters. This helped ease pressure on the new CEO Kelly Ortberg after they rejected two earlier offers in recent weeks.
Jon Holden, the lead negotiator for the union, addressed the members after the results and said, “This is a victory. We can hold our heads high. Now it's our job to get back to work.”
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After the vote, Ortberg in a message to the company’s employees expressed he was pleased the union had approved the deal.
“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,” Ortberg said.
Notably, the strike has been going on since September 13 with workers demanding a 40 per cent increase in salary and defined-benefit pension to be restored for the employees.
David Lemon, a worker in equipment calibration certification in Seattle, voted in favour of the contract and said, “I’m ready to get back to work.”
While the old pension will not be restored, the workers received a bump to company matching contributions for their 401(k) plans.
Analysts noted that the strike has ended up costing the company $100 million a day in revenue. As a result, Boeing also raised $24 billion from investors last week in order to save its investment-grade credit rating.