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After sending employees on unpaid leaves, axing thousands of jobs, and delaying production, Boeing is now back on track.

Recently, Boeing workers accepted a new job contract that ended their seven-week strike that began on September 13 involving 33,000 machinists.

Initially, the group demanded a 40% wage increase and to bring back the previous plan on pension. Now, Reuters reported that the new contract will offer a 38% pay increase instead for over four years and a $12,000 bonus for each member.

Marked as the largest union in the history of Boeing, the machinists argued that it's a response to longstanding grievances on wages that lagged behind inflation.

The old pension plan won't be restored, but the company instead, promises to increase matching contributions to 401(k) plans and commit to producing the next airplane in the Seattle area.

Boeing Ends Long Strike

CEO Kelly Ortberg was relieved at the resolution, while also acknowledging the difficulties faced by both management and workers during several negotiations. According to VCPost, an initial offer was half accepted by machinists but eventually fell back due to a lack of other resolutions.

With the strike now over, Boeing will focus on ramping up production that faced delays due to the strike, although it will take time to return to previous output levels, especially for the 737 MAX.

The contract was met with positive remarks, but some Boeing employees were dissatisfied for settling less than what they had initially sought. The average pay will rise to about $119,309 globally, but the long-term relationship between the union and Boeing management will still remain cautious due to the unmet pension requests.

Analysts told Bloomberg that Boeing likely suffered $100 million daily losses during the strike, but the resolution will positively affect the aerospace sector once again, with stabilized competition with Airbus and as a resuming supplier to airlines.

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