The strike at Boeing, the U.S.-based aviation giant, has ended after 53 days. Workers at the company’s West Coast factories, who went on strike on September 13, reached an agreement. The strike concluded with the acceptance of the union’s demands for a 38% wage increase over four years and the reinstatement of defined pension benefits that were lost ten years ago.
Boeing Resumes Production: $12,000 Approval Bonus for Each Worker
The new agreement between Boeing and the union will add a $1.1 billion burden to Boeing’s annual wage budget. According to the agreement, each worker will receive a $12,000 approval bonus. With the strike’s end, the company is preparing to resume production.
How Has the Strike Affected Boeing’s Sales and Production?
Around 33,000 machinists who work on Boeing’s best-selling models, including the 737 Max, 767, and 777 wide-body aircraft, halted work to meet their demands. The strike brought the company’s commercial aircraft production to a near halt and put Boeing in a financially challenging position. Boeing and union leaders announced a tentative agreement on November 1, officially ending the process.
How Did the 2008 Strike and the 737 Max Crisis Impact Boeing’s Financial Situation?
Another lengthy strike in Boeing’s history occurred in 2008, lasting eight weeks and costing the company approximately $100 million per day. Today, Boeing is said to be in a worse financial position than in 2008, especially after the losses of $27 billion following the 737 Max crashes in 2018 and 2019. Additionally, Boeing faces a massive order backlog exceeding $500 billion.
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