Strike ends as Boeing machinists ratify new contract
Striking Boeing machinists approved a new contract offer by an overwhelming margin of 74 percent, union officials said late Saturday.
The vote ends a 57-day strike that began Sept. 6, when union members voted to walk off the job. Most workers will go back to work Monday, under terms of the agreement.
Union members flocked to union halls Saturday to vote on the new contract offer hammered out in recent talks between the union, the company and federal mediators.
Union leaders say the new contract protects more than 5,000 factory jobs that could have been replaced by vendors and includes a bonus and 15 percent pay raise over four years. They recommended that the roughly 27,000 union members accept the offer.
"Our union has delivered what few Americans have - economic certainty and quality benefits for the next four years. Each of you stood up and did your part to win this battle," said District 751 President Tom Wroblewski in a prepared statement on the union's Web site.
"Your solidarity brought Boeing back to the table and made this Company address your issues," he added.
Gov. Chris Gregoire said approval of the labor contract is good for Washington state.
"Today's ratification of a new contract by IAM members is great news for the men and women of The Boeing Co., Boeing's international customers and Washington state," she said. "The new contract allows for a long-term and productive partnership between Boeing and the IAM to continue to construct the best aircraft in the world.
Boeing Co. officials also were relieved that the strike was over and that aircraft production could resume.
"We're looking forward to having our team back together to resume the work of building airplanes for our customers," said Scott Carson, Boeing Commercial Airplanes president and CEO.
"This new contract addresses the union's job security issues while enabling Boeing to retain the flexibility needed to run the business. It rewards employees for their contribution to our success with industry-leading pay and benefits and allows us to remain competitive," he said.
The union vote to accept the offer ends an eight-week labor standoff that has eroded Boeing's profits and delayed deliveries of its commercial aircraft, including its long-postponed 787 jetliner.
The union members, including electricians, painters, mechanics and other production workers, have lost an average of about $7,000 in base pay since the strike began. They had rejected earlier proposals by the company, headquartered in Chicago.
Now that the contract has been approved, they will return to work starting as early as Sunday night for some shift workers, or Monday morning for most machinists.
Chicago-based Boeing and the union agreed to the proposed contract late Monday after five days of negotiations with a federal mediator in Washington, D.C. Major sticking points included job security and health benefits.
It was the union's fourth strike against Boeing in two decades and its longest since 1995. The International Association of Machinists and Aerospace Workers staged strikes against Boeing for 24 days in 2005, 69 days in 1995 and 48 days in 1989.
Boeing officials have said the contract allows them flexibility to manage their business and remain competitive.
The work stoppage was costing the company an estimated $100 million per day in deferred revenue and postponing delivery of its long-awaited 787 jetliner, which has already been delayed three times, and other commercial planes.
The strike came amid surging demand for Boeing's commercial jetliners, which include 737s, 747s, 767s and 777s. Boeing has said its order backlog has swollen to a record $349 billion in value.
It remains unclear how long it would take Boeing's commercial aircraft business to return to pre-strike production levels, but the company's chief financial officer, James Bell, has said Boeing hopes it would take less than two months.
The walkout started as the global economy began sinking into turmoil. Boeing executives have said only 10 percent of the company's orders come from domestic carriers, while the rest are placed by customers in other parts of the world, particularly Asia.
As the Machinists strike wore on, Boeing began talks with another union in hopes of avoiding a second strike by 21,000 scientists, engineers, manual writers, technicians and other hourly workers.
The vote ends a 57-day strike that began Sept. 6, when union members voted to walk off the job. Most workers will go back to work Monday, under terms of the agreement.
Union members flocked to union halls Saturday to vote on the new contract offer hammered out in recent talks between the union, the company and federal mediators.
Union leaders say the new contract protects more than 5,000 factory jobs that could have been replaced by vendors and includes a bonus and 15 percent pay raise over four years. They recommended that the roughly 27,000 union members accept the offer.
"Our union has delivered what few Americans have - economic certainty and quality benefits for the next four years. Each of you stood up and did your part to win this battle," said District 751 President Tom Wroblewski in a prepared statement on the union's Web site.
"Your solidarity brought Boeing back to the table and made this Company address your issues," he added.
Gov. Chris Gregoire said approval of the labor contract is good for Washington state.
"Today's ratification of a new contract by IAM members is great news for the men and women of The Boeing Co., Boeing's international customers and Washington state," she said. "The new contract allows for a long-term and productive partnership between Boeing and the IAM to continue to construct the best aircraft in the world.
Boeing Co. officials also were relieved that the strike was over and that aircraft production could resume.
"We're looking forward to having our team back together to resume the work of building airplanes for our customers," said Scott Carson, Boeing Commercial Airplanes president and CEO.
"This new contract addresses the union's job security issues while enabling Boeing to retain the flexibility needed to run the business. It rewards employees for their contribution to our success with industry-leading pay and benefits and allows us to remain competitive," he said.
The union vote to accept the offer ends an eight-week labor standoff that has eroded Boeing's profits and delayed deliveries of its commercial aircraft, including its long-postponed 787 jetliner.
The union members, including electricians, painters, mechanics and other production workers, have lost an average of about $7,000 in base pay since the strike began. They had rejected earlier proposals by the company, headquartered in Chicago.
Now that the contract has been approved, they will return to work starting as early as Sunday night for some shift workers, or Monday morning for most machinists.
Chicago-based Boeing and the union agreed to the proposed contract late Monday after five days of negotiations with a federal mediator in Washington, D.C. Major sticking points included job security and health benefits.
It was the union's fourth strike against Boeing in two decades and its longest since 1995. The International Association of Machinists and Aerospace Workers staged strikes against Boeing for 24 days in 2005, 69 days in 1995 and 48 days in 1989.
Boeing officials have said the contract allows them flexibility to manage their business and remain competitive.
The work stoppage was costing the company an estimated $100 million per day in deferred revenue and postponing delivery of its long-awaited 787 jetliner, which has already been delayed three times, and other commercial planes.
The strike came amid surging demand for Boeing's commercial jetliners, which include 737s, 747s, 767s and 777s. Boeing has said its order backlog has swollen to a record $349 billion in value.
It remains unclear how long it would take Boeing's commercial aircraft business to return to pre-strike production levels, but the company's chief financial officer, James Bell, has said Boeing hopes it would take less than two months.
The walkout started as the global economy began sinking into turmoil. Boeing executives have said only 10 percent of the company's orders come from domestic carriers, while the rest are placed by customers in other parts of the world, particularly Asia.
As the Machinists strike wore on, Boeing began talks with another union in hopes of avoiding a second strike by 21,000 scientists, engineers, manual writers, technicians and other hourly workers.