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Machinists return to work at an unsettled Boeing after 8-week strike

Boeing’s 33,000 Machinists union members will be back at work Tuesday, restarting production at the company’s largest commercial airplane factories after an eight-week strike left the plants sitting idle.

The strike strained finances for Boeing, its workforce, aerospace suppliers and businesses surrounding the quieted factories, but it ended before the financial toll became devastating, according to analysts and local economists.

Machinists lost paychecks and health insurance benefits but are returning to work with a guaranteed wage hike and an extra one-time ratification bonus. Boeing risked a credit rating downgrade and further production delays, but analysts appear optimistic the company can successfully move forward if it ramps up production efficiently.

Aerospace suppliers on hold while Boeing’s Renton and Everett factories sat idle may face the worst damage, as their workers return without the perks of a new contract.

The strike, which began Sept. 13, ended last week when 59% of ballots cast supported the new contract. Machinists secured a 38% general wage increase over the next four years and a $12,000 ratification bonus. At 53 days, the strike was slightly shorter than the last work stoppage at Boeing, which lasted 57 days in 2008.

Workers lost an average of $10,400 in wages after 50 days on strike, according to an analysis from the investment banking company Jefferies. But, some workers could see a $9,900 gain in the first year of the contract. And, workers can choose how to split the $12,000 ratification bonus between their paycheck and contributions to a 401(k) retirement plan.

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Boeing’s agreement with Machinists will serve as a “benchmark” for future negotiations, the analysts wrote, including workers at supplier Spirit AeroSystems, which Boeing is acquiring. (emphasis mine)

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Looming layoffs

Machinists are returning to the factory right as Boeing is gearing up to lay off 10% of its workforce, or 17,000 roles. The company plans to notify the first of those workers who will be let go on Wednesday, one day after the Machinists must be back at work.

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Originally posted by RogueJSK:
Cool. Now they can go back to building planes whose doors fall off and spacecraft that strand astronauts in space. Just with 38% more pay for their same poor quality work. And 10% fewer workers to do it.

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Originally posted by Mars_Attacks:
Boeing blew it with the Starliner.

Not even the union can leverage Boeing back into profitability.

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Originally posted by corsair:
That company needs to be broken up, for its own good.

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Originally posted by old rugged cross:
Anyone know or have a guess what the percentage of the worlds aircraft is Boeing?

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Originally posted by old rugged cross:
Anyone know or have a guess what the percentage of the worlds aircraft is Boeing?