striking workers accept wage deal and end seven weeks of social unrest

Striking Boeing workers celebrate the approval of the agreement reached with the company's management, Monday, November 4, 2024, in Seattle (United States). DAVID RYDER / REUTERS

On Monday evening, November 4, striking Boeing workers accepted a new draft social agreement. After rejecting two offers, IAM-District 751, a branch of the International Association of Machinists and Aerospace Workers (IAM), the machinists' union, said it had 59% approval of the agreement providing a salary increase very close to his demands, but not the restoration of the old retirement system.

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The agreement ends a more than seven-week walkout, which cost the company and its suppliers more than $10 billion, and provides respite for Boeing's new chief executive, Kelly Ortberg. More than 33,000 employees in the Seattle region, in the northwest of the United States, will return to two major assembly plants.

“The strike will end and it is now up to us to get back to work and start building the planes, raise prices and get this company back on the path to financial success.”said Jon Holden, president of IAM-District 751, during a press conference. “I am proud of our members”he added. “They have accomplished a lot and we are ready to move forward. »

Workers assigned to the production of Boeing's flagship aircraft, the 737 MAX, as well as the 767 and 777, had been on strike since September 13.

The announced project includes a salary increase of 38% over the four years of the social agreement. The union demanded 40%. Many employees also hoped for the reestablishment of the guaranteed-amount retirement pension system – 42% of current union members had one – which was abolished by a social agreement in 2014 in favor of a capitalization system.

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“I think Boeing can do better. They can give us back our pension and do more in terms of work-life balance”Mike Corsetti, quality inspector for thirteen years, reacted on Friday. But for Boeing, this backpedaling is inconceivable because “excessively expensive”. Kelly Ortberg, boss of the group since August, said ” happy “ that an agreement has been reached.

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“The past few months have been difficult for all of us, but we are on the same team”he said in a message to employees. He mentioned “the importance of this moment for our history and for future generations”. “There is much work to be done to return to the excellence that has made Boeing an iconic company. »

According to the Anderson Economic Group, this is the costliest strike of this century in the United States with more than $11.56 billion in direct impact since September 13, including $6.5 billion shortfall. to gain for Boeing and 2.87 billion for its suppliers.

The President of the United States, Joe Biden, “felicity” the union and the firm “to have reached an agreement that reflects the hard work and sacrifices of the 33,000 machinists” and also mentioned the support of his economic team. “Over the past four years, we have demonstrated that collective bargaining works. Good deals benefit workers, businesses and consumers and are essential to growing the U.S. economy.”he declared again, on the eve of the presidential election.

Fourth offer

This is Boeing's fourth offer since the beginning of September, but the third submitted to a vote by members. The first, rejected on September 12 by nearly 95% of union members, who also voted for an immediate strike, provided for an increase of 25%. Boeing then offered 30%, then 35% and, finally, 38%. The group also reinstated an annual bonus (4% of annual salary), increased the ratification bonus (from 3,000 to 12,000 dollars, 2,750 to 13,000 euros) and increased the contribution to the capitalization retirement plan.

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It has maintained its commitment to manufacturing its next plane – expected by 2035 – in the Seattle region, birthplace of Boeing, which represents a guarantee of tens of thousands of jobs for several decades.

The strikers, without health insurance since the end of September, had received $250 per week from the union since the fourth week of the strike, and some depended on food banks to keep them going.

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End of crucial strike for Boeing

Union leaders had recommended ratification of the first offer, arguing that they had no guarantee of obtaining more with a walkout, but they abstained in the second vote (64% rejection).

The end of the strike is crucial for Boeing, in great financial difficulties because the walkout paralyzes the two factories producing the 737 MAX – its flagship plane –, the 777, the 767 and several military programs. Boeing customers were also waiting for the social conflict to be resolved. Michael O'Leary, boss of Ryanair, estimated on CNBC that delivery and certification delays (737 MAX 7 and 10) will deprive it of fifteen million passengers in 2024 and 2025.

Several weeks should now be necessary to completely restart the production lines, in a delicate context for Boeing. The union said workers could resume their activities on Wednesday and that they would all be back on duty by November 12 at the latest. Boeing, however, warned in advance that some employees will have to receive training again, due to the lapse of time during the strike.

According to analysts, the strike cost Boeing about $100 million a day in lost revenue. The situation pushed the group to carry out a major fundraising from investors last week.

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Le Monde with AFP and Reuters

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