Boeing Machinists Union Votes to End Strike

Key Takeaways

• Boeing's machinists union voted to approve a third contract agreement, ending a crippling strike at the plane maker that has lasted nearly two months.
• Members of the International Association of Machinists accepted an offer that included 38% pay increases, along with a ratification bonus that workers can elect to use as part of their retirement savings. 
• Boeing’s latest proposal received the support of 59% of the votes cast by union members.

Boeing's (BA) machinists union voted to approve a third contract agreement, ending a crippling strike at the plane maker that has lasted nearly two months.

Shares fell, however, as analysts noted that ramping production up will take time.

Members of the International Association of Machinists accepted an offer that included 38% pay increases, along with a ratification bonus that workers can elect to use as part of their retirement savings. The union rejected a previous offer from Boeing that included a 35% pay hike, extending the strike that began on Sept. 13.

Boeing’s latest proposal received the support of 59% of the votes cast by union members, the union said.

"While the past few months have been difficult for all of us, we are all part of the same team,"
Boeing Chief Executive Officer (CEO) Kelly Ortberg, who stepped into the role in August, said in a statement. "There is much work ahead to return to the excellence that made Boeing an iconic company."

Strikers Need to Return to Work by Nov. 12

The striking employees, whose absence had put production at a near-standstill, can return to work Wednesday "and must return by beginning of their shift on Nov. 12, 2024," according to the union and the company.

Bank of America Securities analysts stuck with their neutral call and $155.07 price target on Boeing stock, noting that "while the strike ending and workers returning to the shopfloor is a meaningful step in the right direction, ramping back up will take time."

"Some employees will need to attending[sic] retraining session before returning in full swing, with a firm return deadline of November 12th," the analysts added, noting they expect to see "some volatility" in Boeing's share price.

Boeing has been hit by a string of crises this year, starting in early January when a door plug detached during an Alaska Airlines (ALK) flight. The cash drain from the strike has led the jet maker to raise billions of dollars in funding.

Ortberg has announced plans to lay off about 10% of its workforce, or 17,000 workers, "over the coming months" and is postponing the launch of Boeing's first 777x jetliner.

Boeing shares fell as much as 0.38% Tuesday morning and are down around 40% this year.

UPDATE—Nov. 5, 2024: This article has been updated to include comments from Bank of America Securities and to reflect fresh share prices.

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