Skift Take
Agreement after a 53-day strike is good news for Boeing and its airline customers, but don’t expect the planemaker’s problems to disappear overnight. This will be a long-haul recovery.
Agreement has been reached in a bruising labor dispute between Boeing and its largest union. Late on Monday, it was announced that members of the International Association of Machinists and Aerospace Workers (IAM) had voted to accept the latest pay offer. It ends a hugely damaging 53-day walkout by staff that crippled production of Boeingâs best-selling planes.Â
Under the new deal, staff will receive a 38% pay rise over the next four years. There will also be a one-off $12,000 bonus and enhancements to retirement options. While a simple majority of 50% + one vote was needed for the vote to pass, 59% of union members ultimately voted in favor. It followed two earlier contract proposals that were rejected by members.
âWe can hold our heads high. We all stood strong, and we achieved something that we hadnât achieved in the last 22 years,â said IAM leader Jon Holden.
The union confirmed that striking employees have a seven-day window to return to work. This starts on Wednesday, November 6, and runs until Tuesday, November 12.
Boeing’s Long-Haul Recovery
While welcoming the deal, Boeing chief executive Kelly Ortberg warned that rebuilding Boeing’s reputation and profitability had just begun.
“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,” Ortberg said.
The end of the strike is good news for Boeingâs airline customers, but a return to regular delivery flows will take time. The planemaker previously warned that it could take weeks for factories and supply chains to regain momentum after the extended stoppage.
Earlier on Monday, Ryanair CEO Michael OâLeary described Boeing delivery delays as âa pain in the backside.â
From Washington D.C. to Washington State
In recent weeks, senior representatives from the Department of Labor attempted to break the deadlock between Boeing and the IAM. Responding to Mondayâs developments, Acting Secretary of Labor Julie Su described the deal as âhistoric.â
âThis agreement proves yet again that collective bargaining works. With this new agreement ratified, Boeing and its machinists can now move forward to build and strengthen their partnership, which will be critical to Boeingâs success,â said Secretary Su.
IAM members at Boeing downed tools at midnight on September 13, sparking the first major labor dispute between the parties since 2008. On that occasion, drawn-out negotiations resulted in a 57-day stoppage, drawing parallels with 2024âs strike.Â
The IAM represents around 33,000 workers in the Pacific Northwest. Washington State is an important production center for Boeing with its best-selling 737 Max and 777 models manufactured in the region.
The strike cost Boeing roughly $1 billion a month, according to estimates from S&P Global. As part of an effort to shore up finances, Boeing CEO Kelly Ortberg recently told staff that the company will lay off 10% of its workforce. First deliveries of the flagship 777X commercial airliner will also be pushed back to 2026.
Airlines Sector Stock Index Performance Year-to-Date
What am I looking at? The performance of airline sector stocks within the ST200. The index includes companies publicly traded across global markets including network carriers, low-cost carriers, and other related companies.
The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more airlines sector financial performance.
Read the full methodology behind the Skift Travel 200.
