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Boeing's 53 day mechanic strike has finally come to an end. On Monday, the company's union workers voted to accept Boeing's latest agreement.
In the new contract, Boeing will provide workers with a condition of a 38% increase in wages over the next four years. After the four-year term expires, the average annual salary of Boeing mechanics will reach $119309, which is approximately $43700 higher than the average annual salary of previous contracts.
Although this contract means that Boeing's financial pressure may further increase in the future, for the company, the urgent task is to quickly resume production at factories around Seattle and Portland.
The CEO of Boeing urged union members to approve new contracts as soon as possible last Friday, in order to unite and rebuild Boeing's aircraft manufacturing business and deliver. Many people in the entire supply chain are counting on Boeing's survival.
Let's breathe a sigh of relief
This contract is the third labor contract submitted by Boeing. At the beginning of the strike on September 13th, Boeing promised a 25% salary increase for 33000 mechanics over the next four years, but the plan was overwhelmingly rejected by the union.
Subsequently, at the end of October, Boeing once again proposed a contract with a 35% salary increase over four years and an additional $7000 bonus, but the plan continued to be rejected by workers.
One issue that has caused widespread dissatisfaction among workers is the fixed income pension plan. The plan was frozen in 2014 because the cost and risk of this type of pension are usually fully borne by the company. Compared to the popular employee paid 401k plan in recent years, it clearly imposes a greater burden on the company.
However, the pension issue was not resolved as the workers had hoped in the latest contract, but the union urged its members to vote in favor of the contract as a bargaining chip for future negotiations. The union also stated that the entire negotiation committee believes that now is the time to resolve the strike issue and move forward.
This also relieved Boeing. Since the cabin door of a Boeing Alaska Airlines plane exploded in January this year, Boeing has experienced production delays and strict regulatory scrutiny, putting serious financial pressure on its operations. The end of the strike by the union means that its production can finally return to normal, thereby easing investors' concerns about Boeing.
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