iscover
Production of Boeing aircraft looks set to restart two months after grinding to a near halt following a key union accepting a new pay deal.
The International Association of Machinists and Aerospace Workers (IAM) told its members to “lock in these gains” after employees were offered a 38 per cent pay rise.
This content is available exclusively to Australian Aviation members.
A monthly membership is only $5.99 or save with our annual plans.
- Australian Aviation quarterly print & digital magazines
- Access to In Focus reports every month on our website
- Unlimited access to all Australian Aviation digital content
- Access to the Australian Aviation app
- Australian Aviation quarterly print & digital magazines
- Access to In Focus reports every month on our website
- Access to our Behind the Lens photo galleries and other exclusive content
- Daily news updates via our email bulletin
- Unlimited access to all Australian Aviation digital content
- Access to the Australian Aviation app
- Australian Aviation quarterly print & digital magazines
- Access to In Focus reports every month on our website
- Access to our Behind the Lens photo galleries and other exclusive content
- Daily news updates via our email bulletin
More than 30,000 union members began strike action in September, but the dispute could finally end when a fresh ballot is held on Monday.
The breakthrough has huge implications for the Australian aviation industry, with Virgin having another 18 737 MAX 8s on order and Qantas 12 787 Dreamliners.
IAM previously called for a 40 per cent pay increase, and workers have rejected two previous offers, including one of 35 per cent.
However, the new agreement includes a US$12,000 bonus for workers, up from US$7,000, alongside changes to employees’ retirement plans. If accepted, machinists will see their average annual pay rise to US $119,309 over the next four years.
“We believe asking members to stay on strike longer wouldn’t be right as we have achieved so much success,” IAM said in a statement urging its members to agree to the terms.
Reports have suggested the industrial action has cost the aerospace giant nearly US$10 billion, while production of its major aircraft is thought to have all but stopped.
Last year, Boeing delivered more than 500 aircraft to airlines, but the FAA is still separately capping the number of 737 MAXs it can produce a month to 38 following the Alaska Airlines door plug incident in January.
The rare good news for the planemaker comes weeks after it told staff it would cut 10 per cent of the company’s overall workforce, or around 17,000 roles, within months.
In a sombre memo to staff, new CEO Kelly Ortberg also revealed the company would delay the first delivery of its upcoming 777X wide-body aircraft to 2026 and expects its defence and space division to record “substantial new losses” this quarter.
“Our business is in a difficult position, and it is hard to overstate the challenges we face together,” Ortberg wrote.
Boeing only appointed Ortberg in August to replace Dave Calhoun as chief executive, but he quickly removed Ted Colbert III, the head of defence and space, in September.
Ortberg has an engineering background and over 35 years of aerospace experience, in a move analysts said was in response to claims Boeing had prioritised money over safety.
