Boeing factory workers end 7-week strike

Boeing employees accepted the company's offer for a 38% pay rise. The company is still planning to move forward with major job cuts.

The US aircraft giant can now restart production and generate much-needed cash after 59% of employees voted on Monday to accept Boeing's latest offer. The new contract also includes a $12,000 (€11,030) signing bonus and increased employer contributions to retirement and health care plans.

"The strike will end and now it's our job to get back to work and start building the airplanes, increase the rates and bring this company back to financial success," said Jon Holden, head of the Seattle branch of the International Association of Machinists and Aerospace Workers (IAM) union.

"I'm proud of our members," Holden said. "They've achieved a lot and we're ready to move forward."

Boeing CEO Kelly Ortberg said the company was pleased to have reached an agreement with workers.

"While the past few months have been difficult for all of us, we are all part of the same team," Ortberg added.

Why were workers striking?

A spate of accidents with Boeing's 737 MAX aircraft put workers under increased strain at the company's main plant in the US state of Washington. Accounts from whistleblowers revealed a culture of extreme pressure to produce airplanes even when safety concerns were raised.

Boeing workers had also accepted a number of pay freezes in recent years, even as the cost of living drastically increased.

Workers rejected Boeing's first two offers of 25% and 35% pay increases, voting to strike in mid-September.

While the union was successful in negotiating a higher rise in wages, the company did not meet some workers' demands to restore an older, more generous pension plan.

Ortberg, who only joined the beleaguered company in August, has announced that due to the strike and other factors, the company will be cutting 10% of its 170,000 jobs. 

es/sms (AP, dpa)