Workers at Boeing factories on the west coast of the United States voted on a new labor agreement proposal on Monday (November 4), hoping to end the seven-week strike and restart Boeing's production line. The strike had far-reaching impacts, causing some key projects of Boeing to stop production and causing huge financial pressure. Before the vote, union leaders had expressed support for the proposal and called on workers to approve it to avoid more unfavorable contract conditions.

The union supports the proposal and the labor and management sides reached a compromise

Brandon Bryant, president of the W24 District of the International Association of Machinists and Aerospace Workers (IAM), said that most workers have a positive attitude towards the proposal and believe that although the contract does not fully meet all demands, it lays the foundation for better rights and interests in the future. "The workers feel that this is a contract worth accepting and represents a step forward for both parties." Bryant mentioned in an interview with Reuters.

The new proposal includes a 38% wage increase over four years, an increase from the previous 35% proposal. It is understood that if the workers pass this proposal, they will return to work as early as Wednesday this week and fully resume their jobs by November 12 at the latest. The proposal was also supported by Jon Holden, the president of the 751st District Union in charge of the negotiations. He reminded workers that if the proposal is rejected, Boeing's next contract terms may be more stringent.

The strike caused Boeing's financial pressure to increase sharply, and issuing stocks to ease cash flow problems

Boeing's production line was shut down due to the strike, especially the production of its main model 737 MAX. Last week, in response to the tight liquidity, Boeing urgently issued $24 billion in stocks. The interruption of 737 MAX production, which is the company's main source of revenue, directly led to Boeing's financial pressure. Analysts predict that it may take months or even longer for Boeing to return to its pre-strike production level.

According to Jefferies Investment Bank, a 38% salary increase over four years will increase Boeing's costs by about $1.1 billion during the contract period. This is undoubtedly a heavy burden for Boeing, but it also responds to the workers' demand for a pay raise to a certain extent. However, some analysts believe that even if the strike ends, Boeing's goal of producing 38 aircraft per month by the end of the year will still be difficult to achieve, especially due to factors such as supply chain bottlenecks and human resource adjustments. It may take until 2025 to return to this production rhythm.

Workers are divided, and some are dissatisfied with the proposal

Although the union and union leaders support the new contract, the opinions of the workers are not completely consistent. Some workers believe that the proposal is not enough to make up for the loss of wage growth lagging behind inflation for many years. Many workers hope to fight for a higher wage increase of 40% originally proposed and restore some retirement benefits lost due to previous policy changes.

IAM revealed that workers have only received four small 1% pay increases in the past eight years. Boeing promised in the new contract to increase the average annual salary of mechanics from the previous $75,608 to $119,309. Although the salary increase seems significant, some workers believe that it still does not fully keep up with the rising cost of living and is not enough to cope with the loss of their retirement benefits.

Boeing's new leadership promises to improve relations, and resumption of work after the strike will face challenges

Since taking over as CEO of Boeing in August this year, Kelly Ortberg has promised to improve relations with workers. He hopes to show the company's intention to change to workers through this contract proposal and try to promote a "fundamental cultural change" within Boeing.

Ortberg's appointment background is not without twists and turns. Earlier this year, a nearly new 737 MAX aircraft had a door panel fall off during flight, causing the former CEO to resign. This incident plunged Boeing into a series of production and management crises and affected the company's reputation.

There will still be many challenges in resuming production after the resumption of work in the future. Industry insiders believe that even if the strike ends, the progress of the production line recovery may not be as expected, and it will still be quite difficult to achieve the production target of 38 aircraft per month due to global supply chain problems. Boeing's top management will need to take a series of measures to resume production as soon as possible and regain the trust of the market.

Boeing's strike revealed the long-accumulated contradictions between labor and management, and also brought some thoughts to the top management of the company. Under the new contract, Boeing workers look forward to better treatment and protection, and the company also hopes to boost internal morale and promote the normal operation of the production line.