Paralyzing Strike Ends At Boeing After Workers Ratify New “Life-Changing” Contract 

On Monday night, 33,000 Boeing workers, represented by the International Association of Machinists and Aerospace Workers (IAM) Districts 751 and W24, voted to ratify a new four-year labor contract with the US planemaker, effectively ending the 53-day labor action. This is a big relief for Boeing executives, who have protected the company’s investment-grade credit rating at all costs during the labor action. 

About 59% of IAM members voted in favor of the new labor deal, which includes a 43.65% compounded wage increase—38% before compounding—over the contract’s four-year lifespan. 

“This was a defining moment tonight,” IAM District 751 president Jon Holden said, adding, ”This is a victory. We stood strong, we stood tall, we won.” He noted that more than 26,000 votes had been cast, adding, “I just want to get our members back in the factory.”

Here are the highlights of the new labor contract:

• 38% general wage increase over four years – 13%, 9%, 9%, 7% which compounds to 43.65% over the life of the agreement

• $12,000 Ratification Bonus: The ratification bonus combines the previous $7,000 ratification bonus and the $5,000 lump sum into the 401(k). Now, union members can choose how this total amount is received – in their paycheck, contribution to 401(k), or a combination of both.

• AMPP incentive plan is reinstated, with a guaranteed minimum annual payout of 4%, including 2024 payout in February 2025

• 401(k) employer match of 100% up to 8%

• Special company retirement contribution of 4% into 401(k) maintained

• $105 pension multiplier per year for those vested in the pension plan

• Call-in language back to current contract

• New long-term disability plan and big improvement to short term disability plan

• Health care cost containment

• Improved overtime rules

• Key job security provisions

• Increased Minimum Rates that now increase with COLA increases.

“For many frontline Boeing workers in the IAM Union, the terms of this contract will be life-changing,” IAM Western Territory General Vice President Gary R. Allen said. 

The ratification vote comes days after IAM District 751 told members on X to “lock in these gains and confidently declare victory.” 

In markets, Boeing shares rose nearly 2%. However, on the year, shares are down 40.5%, the worst annual return since the 2008 GFC.

The nearly two-month labor action has taken a financial toll on Boeing, with production lines of its commercial jets shuttered on the West Coast. Last week, the company announced a $21 billion capital raise to offset the cash drain and strengthen its balance sheet to protect its prized investment-grade credit rating.

Besides the union, this resolution is a major win for the new Boeing CEO, Kelly Ortberg, setting the company up for a smoother landing approach to rebuilding the company by focusing on build quality instead of share buybacks and also rid the company of toxic DEI.