Boeing Ends Strike After 7 Weeks... 38% Wage Increase Over 4 Years

The Boeing union in the United States has agreed to a 38% wage increase over four years, ending a strike that lasted more than seven weeks.

According to Bloomberg on the 4th (local time), the largest Boeing union, the International Association of Machinists and Aerospace Workers (IAM) Local 751, announced that about 59% of union members voted in favor of the labor contract proposal.

[Image source=Reuters Yonhap News]

The union stated that about 26,000 of the 33,000 striking workers participated in the vote and called it a "victory." Under this labor agreement, the average annual salary of technicians is expected to rise from the current $75,608 (approximately 107.42 million KRW) to $119,309 (approximately 164.47 million KRW) in four years.

The Boeing union had been striking since September 13, demanding a 40% wage increase and other benefits. This strike is the first Boeing union strike in 16 years since 2008.

With the strike ending, hourly workers at factories in Washington, Oregon, and California are expected to begin returning as early as the 6th and complete their return by the 12th.

The market estimates that the strike caused about $100 million (approximately 137.9 billion KRW) in daily revenue losses. Analysts at investment bank Jefferies expect labor costs to increase by $1.1 billion (approximately 1.5169 trillion KRW) over four years.

Although the strike has concluded, sources say it will take several weeks to increase aircraft production and improve cash flow. Before the strike, the production target for the 737 Max model was 38 units per month, but it is expected to remain in the single digits for the time being.

Boeing has faced regulatory investigations following a series of accidents, including the detachment of part of the fuselage of a 737 Max 9 passenger plane during flight in January. The strike further disrupted aircraft manufacturing and delivery. Boeing expects the strike to widen its third-quarter losses and has announced plans to cut 17,000 employees, about 10% of its total workforce.

Additionally, on the 28th of last month, Boeing sought to raise approximately $24 billion (about 33 trillion KRW) to avoid a downgrade to speculative credit rating.

This content was produced with the assistance of AI translation services.