Boeing factory workers have agreed to end a seven-week strike after union members accepted the latest labour contract offer, bringing much-needed relief to the US plane maker following the work stoppage that stretched its finances and paralysed most of its jet production.
The IAM District 751 union and W24 Machinists said on Tuesday morning that 59 per cent of workers accepted Boeing's latest contract, which includes an offer of a 38 per cent pay increase spread over four years.
Workers can resume work as early as the first shift on November 6 for those who seek to return as quickly as possible, but must return to their work by the beginning of the shift on November 12, the union said.
Boeing's chief executive Kelly Ortberg, in a message to employees after the vote, said that he was pleased that the workers agreed to a deal.
“While the past few months have been difficult for all of us, we are all part of the same team,” he said. “We will only move forward by listening and working together. There is much work ahead to return to the excellence that made Boeing an iconic company.”
US President Joe Biden congratulated Boeing and the union for coming to an agreement that “reflects the hard work and sacrifices of 33,000 Machinist workers.”
The contract “improves workers' ability to retire with dignity and supports fairness at the workplace. This contract is also important for Boeing's future as a critical part of America's aerospace sector”, he said.
“It was achieved with the support of my economic team, including Acting Labour Secretary Julie Su and national economic adviser Lael Brainard,” Mr Biden added as Americans were heading to vote in the presidential election.
The end of the strike and the return to work marks the end of a major obstacle in the US plane manufacturer's efforts to restore its operations and finances.
Shares of the US plane manufacturer were up nearly 2 per cent in pre-market trading on Tuesday.
The ratified agreement represents much-needed relief for Mr Ortberg, as the company reels from a series of setbacks since a door panel blew off a 737 Max plane in mid-air in January.
The breakthrough is "clearly good news for Boeing and particularly the CEO who can now focus on the larger task of turning the business around", John Grant, senior analyst at travel data firm OAG, told The National.
However, it is only the first step in Boeing getting back on track with boosting production and addressing jet delivery delays to its frustrated airline customers.
"It doesn't address the real issues of Boeing and its credibility both in terms of manufacturing and deliveries to airline customers around the world," Mr Grant said.
"Airlines awaiting aircraft for summer 2025 have very little visibility about when they can expect those aircraft, making future planning very difficult."
It will take Boeing a "very long time" to return to near-normal production levels as the US Federal Aviation Administration (FAA) continues to "scrutinise every part of the build processes and that will slow everything down for the company", Mr Grant added.
Prior to the strikes, Boeing had set a target for 737 Max production rate of 38 a month, which was halted due to the seven-week work stoppage.
