Boeing Workers Approve New Contract

Investing.com– Boeing Co (NYSE:BA) workers voted in favor of the planemaker’s latest contract offer on Monday evening, ending a long-running strike that had severely disrupted production for nearly two months.

Local media reports from Seattle said 59% of striking workers voted in favor of a new contract, which will entail wage hikes of 38% over the next four years. However, the contract still did not include the return of a pension plan.

Monday's vote was the third time striking workers voted on a contract offer from Boeing, having rejected two prior offers. This decision brings an end to the strike, involving about 33,000 West Coast factory workers.

The strike began on September 13 and halted most of Boeing’s plane production, costing the firm about $100 million a day in lost revenue. It was Boeing’s worst strike in 16 years, additionally complicated by heightened government scrutiny after an incident where a plane door blew off an Alaskan Airlines flight earlier this year.

Moreover, the company’s Starliner spacecraft malfunctioned during its maiden voyage, stranding two astronauts aboard the International Space Station.

This strike caused Boeing to lose significant cash flow, leading the planemaker to raise about $24 billion in capital last week to bolster its finances and maintain its credit rating.

Although the strike is now resolved, Boeing is expected to take time before returning production to full capacity, with West Coast factory workers anticipated to return this Wednesday.