The employees accepted the aircraft manufacturer’s latest offer with an income increase of 38 percent over a period of four years. The strike began in mid-September and threatened to deepen Boeing’s crisis.
The Boeing proposal was accepted in Monday’s vote with a majority of 59 percent. A week ago, the workers rejected the previous offer of an increase of 35 percent over four years.
One-time payment
With the new contract, the workers will also receive a one-off payment of $12,000 (11,005.14 euros). The union had already negotiated the receipt of bonus payments, which were originally intended to be abolished, in the second offer. The workers must now go back to work by November 12th at the latest.
The strike in the northwest of the United States that began on September 13th paralyzed production of Boeing’s best-selling 737 model and the 777 long-haul jet. This means that Boeing is likely to fall even further behind in deliveries.
Boeing workers had accepted several zero rounds over the past decade and now wanted a significant increase. Boeing announced a few weeks ago that it would cut ten percent of its jobs. The cuts are expected to affect around 17,000 jobs.
Boeing has been in crisis for years after a series of mishaps. Recently, quality management came into even greater focus after a fuselage fragment broke off during climb in January on a virtually new Boeing 737-9 Max from Alaska Airlines. It was only through fortunate circumstances that no one was seriously injured. Accident investigators concluded that the delivered aircraft was missing four fasteners on the fuselage section. Boeing was unable to provide any documentation regarding the assembly work when requested by authorities.
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**Interview with Industry Analyst, Sarah Thompson, on the Boeing Union Strike**
**Interviewer:** Thank you for joining us today, Sarah. The Boeing workers union has gone on strike after the recent contract negotiations. Can you tell us what the union’s demands were and why they decided to reject the initial offer?
**Sarah Thompson:** Absolutely, happy to be here. The workers, through their union, were really pushing for a significant wage increase after years of accepting minimal raises and even zero increases. The initial offer was a 35 percent increase over four years, which they felt was not enough given the high costs of living and the company’s continued profitability. When they rejected that offer and pushed for more, Boeing responded with a new proposal of a 38 percent increase, which is what the workers ultimately accepted.
**Interviewer:** It sounds like the negotiation process was quite contentious. What ultimate impacts do you foresee from this strike, especially regarding Boeing’s production capabilities?
**Sarah Thompson:** The timing of the strike is particularly critical. It’s already paralyzed the production of some of Boeing’s most popular models, like the 737 and the 777. With ongoing supply chain issues and a backlog of orders, this strike could further deepen Boeing’s crises. If they can’t meet delivery deadlines, it could cost them significant amounts in lost revenue and customer trust, especially given their recent challenges in quality and safety.
**Interviewer:** Given that the workers will receive a one-time payment and other benefits, how do you think this will affect employee morale moving forward?
**Sarah Thompson:** The one-time payment of $12,000 along with the new wage increase should provide a significant boost to morale. However, it’s important to remember that many employees are still feeling the strain of previous cutbacks and job losses—Boeing has announced plans to cut around 10 percent of its workforce, which equates to thousands of jobs. While this contract is a step in the right direction, there may be lingering concerns about job security and the stability of the company moving forward.
**Interviewer:** How has Boeing reacted to these developments in terms of its public relations and operational strategy?
**Sarah Thompson:** Boeing has been in a tough spot. Their public narrative has shifted from innovation and reliability to addressing crisis management. After a series of accidents and scrutiny over safety practices—such as the fuselage issue you mentioned—they’re under pressure to improve both their operational protocols and their relationship with employees. The company is likely to emphasize recovery and rebuilding trust moving forward, which is why resolving labor issues quickly is crucial for their public image and operational stability.
**Interviewer:** Thank you, Sarah. Your insights are invaluable as we navigate the ongoing developments in Boeing’s labor situation and its broader implications for the industry.
**Sarah Thompson:** Thank you for having me! It’s a complex situation, and I’ll be watching closely to see how it unfolds.
