Well, friends, the four year errr seven-week nightmare is officially over… and now, 33,000 union workers are set to head back to their jobs today, building airplanes that occasionally don’t fall out of the sky. Fun times.

(Source: Giphy) 

In short, after dragging out the longest and most expensive strike in recent U.S. history, the International Association of Machinists (IAM) narrowly accepted Boeing’s latest peace offering: a 43% wage increase over four years and a $12,000 signing bonus. (Lol and they told us money wasn’t the main motivation… yeah, right). 

(Source: CNBC) 

What’s more is that only 59% of the machinists voted in favor of the deal, meaning a solid 41% are still butt-hurt that Boeing wouldn’t bring back pensions. And really, what made them think they could do it anyway? I mean, imagine thinking Boeing, a company hemorrhaging cash, could fund a pension. Spoiler: Boeing hasn’t funded a pension since 2014.  

(Source: Giphy) 

Now for those of you who are just waking up, the machinists’ strike kicked off on September 13 after Boeing’s first two offers were laughed out of the room. This latest deal has been labeled a “win” by IAM president Jon Holden, who claims members are “ready to move forward.” Translation: Their wives are running out of food stamps. 

The deal gives workers a 13% immediate raise, and they’ll be looking at another 9% and 7% boost in the coming years. Plus, there’s that sweet $12k bonus, which they can stash in their 401(k)—because, again, Boeing’s pension plan is about as non-existent as Kamala Harris in the swing states last night. 

(Source: Giphy) 

But, but, but… even though the strike bleeding appears to be slowing, Boeing is now $6.5 billion in the whole from losses they racked up from the strike. For more context, this whole clusterf**k has cost the U.S. economy an impressive $11.5 billion. Wonderful.

On the other hand, despite Boeing’s “we’re all in this together” rhetoric, the machinists are painfully aware that the real winners here are the execs. After all, while they’ve been on strike, Boeing’s been busy laying off 17,000 people and selling off assets to avoid a junk credit rating. The workers? They’ve collectively lost $600 million in wages.

(Source: NPR) 

Which is why it’s no secret that the pension issue was the sticking point for the 41% who voted against the deal. Holden even called the fight for pensions “righteous.” And he’s not wrong. Defined benefit plans (the kind that pay you every month, no matter how long you live) are practically extinct in corporate America. Only 8% of private-sector workers have them today, down from 39% in 1980. 

However, it’s clear that when you add in incremental pay increases and a fat stack of cash upfront - it definitely drowns out some of the pain. The main issue now is ramping up production - fast. Especially since the strike halted deliveries of Boeing’s cash cow, the 737 Max, and freighter models. And with the supply chain already hanging on by a thread, the company’s got a long way to go before it’s back to “mediocre iconic status.”

(Source: Giphy) 

Meaning, Boeing CEO, Kelly Ortberg’s job just got a whole lot tougher. He’s got to not only repair relations with a pissed-off workforce but also figure out how to dig Boeing out of its financial pit. So in the end, sure, the machinists might be back to work, but don’t hold your breath too much. As we’ve seen, things can go haywire faster than a bat out of hell.

In the meantime, do what you will with this information especially considering Boeing is still down -4.92% over the past five days, and down -41.67% YTD. As always, stay safe and stay frosty, friends! Until next time…

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Stocks.News does not hold positions in companies mentioned in the article.