Boeing machinists approved a new labor deal Monday, ending a costly seven-week strike that halted most of the company’s aircraft production.
Machinists voted 59% in favor of the new contract, which includes 38% wage increases over four years and other improvements.
Boeing said machinist pay will average $119,309 at the end of this contract proposal. The first wage rise will be 13%. The contract also increases 401(k) contributions and a signing bonus of up to $12,000 or a combination of a $7,000 bonus and $5,000 401(k) deposit.
Boeing will now be able to resume production, key to its recovery since the bulk of the aircraft price is paid when they are handed over to customers. But getting up to target production rates, particularly for the 737 Max, Boeing’s cash cow, will take time.
“While the strike ending and workers returning to the shopfloor is a meaningful step in the right direction, ramping back up will take time,” said Bank of America aerospace analyst Ron Epstein. He said some workers will need to be retrained.
The machinists, who build planes such as the bestselling 737 Max, 777 and 767 aircraft must return to their jobs no later than November 12 the union said. They could return as early as Wednesday.