Boeing’s West Coast factory workers accepted a new contract offer on Monday, ending a 7-week strike.
Around 33,000 machinists who work on the best-selling 737 MAX jet, as well as the 767 and 777 widebodies, have been on strike since Sept. 13, demanding a 40% wage increase and the restoration of a defined-benefit pension they lost a decade ago for a 401(k) retirement plan.
Boeing’s U.S. West Coast factory workers accepted a new contract offer on Monday, ending a bitter seven-week strike that halted most jet production and deepened a financial crisis at the troubled planemaker.
The union said members voted 59% in favor of the new contract, which includes a 38% pay rise spread over four years, easing pressure on new Boeing CEO Kelly Ortberg after two previous offers were voted down in recent weeks.
The end of the first strike in 16 years by Boeing’s largest union provides welcome relief for a company that has lurched from one setback to the next since a door panel blew off a near-new 737 MAX plane in mid-air in January.
Boeing will now take weeks to ramp up plane production and boost cash flow, with 737 MAX output expected to languish in the single digits per month for some time, according to two people briefed on the matter, far short of the 38 a month targeted before the strike.
Workers can start returning to building planes from Wednesday, the International Association of Machinists and Aerospace Workers (IAM) said, although Boeing has warned that some people will have to be retrained due to the prolonged period away from the factory floor.
The strike was costing Boeing around $100 million a day in lost revenue, analysts said, prompting the planemaker to raise $24 billion from investors last week in a bid to preserve its investment-grade credit rating.
Boeing has said the average annual machinists’ pay at the end of the new four-year contract will be $119,309, up from $75,608 previously.