Boeing machinists' bumper pay packet is just the latest win for unionized workers

• Striking Boeing workers voted in favor of a 38% pay rise.
• The latest big victory for US labor unions could inspire others despite the tense process.
• "Over the last four years, we've shown collective bargaining works," President Joe Biden said.

After seven weeks and billions of dollars in expected losses for the company, the strike at Boeing is over.

Members of the International Association of Machinists and Aerospace Workers voted in favor of a contract that includes a 38% general wage increase over four years and a $12,000 ratification bonus.

"For many frontline Boeing workers in the IAM Union, the terms of this contract will be life-changing," said Gary R. Allen, general vice president of IAM Western Territory.

Boeing said the average pay for machinists, currently $75,608, would rise to $119,309 by the end of the contract. The 38% wage increase compounds to around 43% over the term of the deal.

The machinists' victory is the latest to highlight the power of labor unions in the US.

Last year, the Teamsters secured a deal that would see the average UPS driver make about $170,000 in annual pay and benefits. Then, the United Auto Workers union took on all the US' big three automakers simultaneously for the first time, securing a 25% pay rise.

"Over the last four years, we've shown collective bargaining works," President Joe Biden said in a Monday statement. "Good contracts benefit workers, businesses, and consumers — and are key to growing the American economy from the middle out and the bottom up."

It has been a tense road for the roughly 33,000 unionized Boeing workers who began their strike on September 13. The strike started after the union's members overwhelmingly voted down Boeing's first offer of a 25% pay increase.

Negotiations later fell apart, before each side lodged complaints with the National Labor Relations Board, accusing the other of bargaining in bad faith.

Acting US Labor Secretary Julie Su flew to Seattle to help mediate discussions, leading to the accepted offer.

The union didn't win a return to the traditional pension plan lost in 2014 negotiations — a key point for many on the picket lines — but did secure numerous improvements to the 401(k) plan.

Despite the arduous process and heated negotiations, it resulted in another strong pay rise for union members. That may only grow more common as workers find inspiration from others' victories, something noted by the president of the Boeing union.

"A contract like this sends an inspiring message to all workers in the United States who are seeking to join unions or who have been shortchanged by their employer," said IAM International President Brian Bryant.

Read the original article on Business Insider