Contract Details and Union Response
Union machinists at voted to accept a contract that includes a 38% pay raise over four years, ending a strike that lasted more than seven weeks and halted production of Boeing's bestselling planes.
Despite the significant pay increase, the contract did not restore a traditional pension plan abolished nearly a decade ago, a key demand from the strikers. Union leaders and some workers expressed mixed feelings about the ratification, citing pressure and unmet demands.
Company Impact and Future Outlook
The strike contributed to Boeing's financial troubles, with the company reporting a third-quarter loss of over $6 billion and announcing plans to lay off about 10% of its workforce, roughly 17,000 employees.
Boeing faces a challenging road to ramp up production, with plans to delay the rollout of the 777X and stop building the cargo version of the 767 jet in 2027. The company aims to return to its production targets by 2026, amidst efforts to stabilize its operations and reputation.