This story originally appeared on AirlineGeeks.com.
International Association of Machinists and Aerospace Workers (IAM) union members voted to approve a new contract with Boeing on Monday, putting an end to a lengthy strike in the Pacific Northwest.
Over 26,000 members across IAM districts 751 and W24 located, respectively, in Seattle and Gladstone, Oregon, voted by a margin of 59% to approve a 38% pay raise. IAM District 751 streamed the voting results live on its Facebook page.
The contract ends the 53-day strike, which has resulted in enormous losses by The Boeing Co., including planned layoffs for 10% of its workforce.
Jon Holden, president of IAM District 751, said after the vote that he was proud of the “win” by his members.
“Tonight our members had a ratification vote …,” Holden said. “This was a hard-fought strike. There was tough, hard bargaining on both sides. Our members voted to strike and withhold their labor. They stood strong and they stood together. Tonight they secured a victory. They voted by 59% to accept the agreement. They get to move forward, the strike will end and now it’s our job to get back to work and start building airplanes, increase the rates and bring this company back to financial success.”
According to the union, the new contract includes a 38% pay increase – 43% when compounded – over its four-year lifespan as well as a $12,000 ratification bonus.
The contract – previously endorsed by IAM leadership – also increases the company 401(k) match to 100% of the first 8% contributed, along with a 4% automatic company contribution. While a much-coveted pension was not offered, the contract offer promises a $105 monthly increase to employees’ Boeing Company Employment Retirement Plan (BCERP).
“This agreement represents a new standard in the aerospace industry – one that sends a clear statement that aerospace jobs must be middle class careers in which workers can thrive,” said Brian Bryant, international president of IAM, in a news release. “Workers in the aerospace industry, led by the IAM — the most powerful aerospace union in the world — will not settle for anything less than the respect and family-sustaining wages and benefits they need and deserve.”
Monday’s contract approval averts fears over a report that Boeing CEO Kelly Ortberg might have walked back items on previously negotiated offers in the case of a “no” vote. The Seattle Times reported on Friday that if the contract had been rejected, “the next contract proposal will be less generous, with potentially serious consequences for the future,” according to Ortberg.
After Monday night’s results, Ortberg published a memo commenting on the ratified agreement.
“We were pleased to reach a ratified agreement with IAM 751 & W24 tonight,” he said. “While the past few months have been difficult for all of us, we are all part of the same team. We will only move forward by listening and working together. There is much work ahead to return to the excellence that made Boeing an iconic company. This is an important time in our history, and like generations before us, we will face into the moment together, and stronger as one team.”
IAM members are expected to return to work by the beginning of their shift on Nov. 12. Workers are permitted to work as early as first shift on Wednesday.
AirlineGeeks reached out to Boeing for comment.