The International Association of Machinists and Aerospace Workers reported that approximately 59% of union members endorsed the agreement, which encompasses a 38% wage increase over a four-year period and enhanced retirement benefits for the approximately 33,000 workers involved in the strike.
"This was a pivotal moment tonight," stated Jon Holden, president of IAM District 751. "This is a triumph. We remained united and resolute, and we succeeded." He noted that over 26,000 votes were cast and expressed a desire to have members return to the factory promptly.
Hourly employees are expected to begin returning to facilities in Washington, Oregon, and California as early as Wednesday.
This development marks a significant achievement for Boeing's new CEO, Kelly Ortberg, allowing him to advance his initiatives aimed at revitalizing the company's culture and enhancing the quality of work within its factories. Ortberg, who has been in his role for just three months, took over a company already facing challenges following a serious accident in January that impacted production, finances, and leadership.
Following weeks of intense negotiations, the two leaders adopted a conciliatory approach, with Acting Labor Secretary Julie Su playing a key role in facilitating the agreement.
Ortberg expressed his appreciation for the deal in a message to Boeing staff, stating, "Although the last few months have been challenging for everyone, we are all part of the same team. Progress will only come through collaboration and mutual understanding."
President Joe Biden also commended both parties for their cooperation, emphasizing that strong contracts are essential for fostering economic growth from the middle class and lower-income levels.
Holden committed to collaborating with Ortberg, acknowledging that he is new and has much to learn. However, the union remains "open and available" to assist its members in getting back on track. "I've heard many positive remarks about his skills in operations and engineering, which is beneficial for the company."
Despite the union negotiators endorsing the proposal and cautioning that another rejection could jeopardize the benefits achieved through extensive collective bargaining, the proposal encountered significant opposition, including some boos during the vote announcement.
Holden recognized that the 41% of members who voted against the agreement represented a substantial segment of his constituency and pledged to seek improved terms in the upcoming contract negotiations in 2028. "There are individuals who are dissatisfied with the agreement," he noted.
Regarding concerns about potential layoffs now that the strike has concluded, Holden remarked that it would be shortsighted for Boeing to consider that. "There are approximately 6,000 airplanes in the backlog. They require our workforce to build them, and it is crucial to reintegrate our members into the factories."
The strike has exacerbated Boeing's financial challenges, with estimates suggesting a loss of around $100 million in revenue each day. Although Boeing managed to avoid a likely downgrade of its credit rating to junk status by securing over $24 billion in capital, the company still faces significant hurdles as it works to restart its factories and support its suppliers.
In addition to a 38% pay increase, the fourth proposal for a four-year contract includes a $12,000 signing bonus for hourly workers upon ratification and enhanced contributions to retirement savings plans. However, it does not reinstate pensions, which remains a contentious issue for some long-serving employees.
Boeing faces approximately $1.1 billion in increased salary expenses over four years due to the agreement, according to Jefferies analyst Sheila Kahyaoglu.
In response to the strike’s repercussions, Ortberg implemented various cost-cutting measures, including a 10% workforce reduction, hiring freezes, and travel restrictions to preserve cash. He assumed leadership in August following a senior management shakeup in response to a series of crises that have impacted Boeing since the beginning of the year.