Get Premium Data for Cyber Monday: Up to 55% Off InvestingProCLAIM SALE

Boeing workers accept contract offer, ending crippling strike

Published 05/11/2024, 05:10
Updated 05/11/2024, 05:14
© Reuters.
BA
-

Investing.com-- Boeing Co (NYSE:BA) workers voted in favor of the planemaker’s latest contract offer on Monday evening, ending a long-running strike that had severely disrupted production for nearly two months.

Local media reports from Seattle said 59% of striking workers voted in favor of a new contract, which will entail wage hikes of 38% over the next four years. But the contract still did not include the return of a pension plan.

Monday's vote was the third time striking workers voted on a contract offer from Boeing, having rejected two prior offers. Monday's decision brings an end to the strike, which involved about 33,000 West Coast factory workers.

The strike had begun on September 13 and had halted most of Boeing’s plane production while also costing the firm about $100 million a day in lost revenue.

The strike was Boeing’s worst in 16 years, and came as an additional headwind for the plane maker, which was already grappling with heightened government scrutiny after a plane door blew off an Alaskan Airlines flight earlier this year. 

The company’s Starliner spacecraft also malfunctioned during its maiden voyage and stranded two astronauts aboard the International Space Station earlier this year. 

The strike saw Boeing hemorrhaging cash, which saw the planemaker raising about $24 billion in capital last week to bolster its cash flow and maintain its credit rating. 

But even with the strike now resolved, the company is still expected to take some time before returning production to full capacity. Workers in its West Coast factories are expected to return this Wednesday. 

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.