(VitalNews.org) – Boeing’s machinists union just scored a massive victory by ending their 53-day strike with a historic wage increase.
59% of union members approved the new contract, which includes a staggering 38% wage increase over four years.
This will boost the average annual salary to $119,309 by the end of the agreement and each employee will receive a $12,000 bonus.
“While the past few months have been difficult for all of us, we are all part of the same team. We will only move forward by listening and working together. There is much work ahead to return to the excellence that made Boeing an iconic company,” said Boeing’s new CEO Kelly Ortberg.
While this victory is cause for celebration among workers, it raises concerns about Boeing’s financial stability as a critical player in America’s aerospace industry. The strike cost the company an estimated $5.5 billion in lost earnings.
The company is already dealing with safety issues and the fallout from the 737 Max crashes and now faces increased labor costs that could impact its competitiveness in the global market.
Although the union scored a massive win, it is worth noting that Boeing plans to cut about 17,000 workers nationwide despite the contract vote outcome.
While the new contract is undoubtedly a win for the machinists, the increased labor costs could potentially push aircraft prices upward, affecting airlines and consumers.
Additionally, this outcome may encourage other unions to pursue similar demands, potentially creating a ripple effect across various industries.
The outcome of this labor dispute may set a precedent for future negotiations between major corporations and their unions, potentially reshaping the landscape of American manufacturing.
Additionally, Joe Biden and Acting Labor Secretary Julie Su’s involvement in the negotiation process highlights the political implications of this labor fight.
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