Boeing strikers accepted the terms of a new labor agreement to end a seven-week strike. The seattle-based president of the International Federation of Mechanical and aerospace workers said 59 percent of union members who took part in the vote agreed with Boeing’s proposal for a new formal labor contract, Reuters reported Friday, it includes a 38 per cent pay rise over the next four years and a $12,000 signing bonus.
Reported that since January this year, a nearly new 737 MAX aircraft in flight cabin door off the incident, Boeing continued to encounter setbacks. Since September 13, some 33,000 workers involved in the production of 737 MAX jets and 767 and 777 wide-body aircraft have gone on strike, demanding a 40 per cent increase in wages and the reinstatement of defined-benefit pension schemes. The strike halted production of most jets and deepened the financial crisis at the troubled aircraft maker.
Reuters said the new contract eased pressure on Boeing’s new chief executive, Robert Otteberg, who had proposed two contracts that had been rejected. Nearly two-thirds of union members rejected the latest contract proposal in a vote last month, ABC said Friday. The move follows a proposal in September that was condemned by more than 90 per cent of union members.
Andson estimates that Boeing lost about $6.5 billion as of the end of last week. The company warned that its losses would last at least until the end of 2025, no matter how quickly the strike ended. The overall economic cost to the United States was more than $11.5 billion. U. S. “Political News Network” 5, said there are signs that the Boeing strike has begun to affect the number of U. S. jobs. Data released by the Bureau of Labor Statistics last week showed manufacturing jobs had fallen by about 46,000, largely “Due to strike activity”.
The Union said workers would be allowed to return to the aircraft site from Saturday and must return to work by November 12, but Boeing warned that because of long departures from the plant, some will have to be retrained. Although the strike is over, its effects are likely to continue, Politico said. Moody ratings said last week that the strike would affect production of the 737 MAX next year.