Business | Aviation
Boeing strike ends with union deal
Machinists union members ratified a new contract with Boeing on Saturday, ending an eight-week strike that cut the planemaker's profits and stalled jetliner deliveries.
- AP
- Published: 23:26 November 2, 2008
Seattle: Machinists union members ratified a new contract with Boeing on Saturday, ending an eight-week strike that cut the planemaker's profits and stalled jetliner deliveries.
The vote by members of the union, which represents about 27,000 workers at plants in Washington state, Oregon and Kansas, was about 74 per cent in favour of the proposal five days after the two sides tentatively agreed to the deal and union leaders recommended its approval.
The workers are expected to return to Boeing's commercial aeroplane factories, which have been closed since the September 6 walkout, starting from last night.
The union has said the contract protects more than 5,000 factory jobs, prevents the outsourcing of certain positions and preserves health care benefits.
It also promises pay increases over four years rather than three, as outlined in earlier offers.
Pay loss
The union members have lost an average of about $7,000 in base pay since the strike began.
They had rejected earlier proposals by the company.
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.
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