A months long strike at aerospace giant Boeing Co. (BA) has ended after machinists voted in favour of a new contract that provides them with a 38% wage increase over four years.
The union representing the machinists said that 59% of its members voted to support the latest contract offer from Boeing, which also provides enhanced healthcare and pension benefits.
Acceptance of the new contract ends a strike that began in September of this year and halted most of Boeing’s commercial aircraft manufacturing, costing the company an estimated $1 billion U.S. per month.
Boeing recently raised more than $20 billion U.S. in a share sale to help it weather its financial problems after warning that it will likely burn cash through the end of 2025.
This was the third contract proposal from Boeing’s management team that the union voted on.
The 33,000 machinists had previously rejected a 35% wage increase and had demanded a 40% pay hike over the four years of a new labour agreement.
However, management and the union had warned the machinists that the latest contract was likely as good as workers could expect to get and that any further offers would be regressive.
Under terms of the deal that has been accepted, Boeing machinists will earn an average of $119,309 U.S. a year, not including overtime pay. The first wage increase will be 13%.
The contract also increases 401(k) retirement contributions and provides a signing bonus of $12,000 U.S. per worker.
The machinists, who help to build airplanes such as the 737 Max must now return to work no later than Nov. 12.
Boeing’s stock has declined nearly 40% this year and currently trades at $155.07 U.S. per share.
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