Boeing machinists end eight-week strike with 38% pay increase, Biden praises deal

Boeing reaped more than $1 million in unnecessary costs from U.S. military contracts, which overpaid the manufacturer by 8,000% just for soap dispensers, a recent audit found. Now it will have to share some of the booty with workers.

Its machinists union in the Pacific Northwest ended a nearly eight-week strike after securing a 38% pay increase and pledge for the next plane to be built in the region, averting disaster for Boeing's parts suppliers who were starting to lay off workers or absorbing the costs of waiting for Boeing to start buying again and airlines awaiting 737 deliveries, The Wall Street Journal reported.

Workers rejected the first two offers of a 25% pay increase and then 35%. The average wage will now reach about $119,000 for 33,000 workers at the end of the four-year deal, while Boeing simultaneously cuts 10% of its workforce in the coming months.

Union chapter president Jon Holden said the key was "we had massive leverage this time." Boeing said it will take months to reach production levels it expected to hit by year-end.

President Biden praised the deal and the White House said federal officials were involved in negotiations. "This contract is also important for Boeing’s future as a critical part of America’s aerospace sector," Biden said.

The company has faced repeated scrutiny and embarrassment in the past year, with Elon Musk's SpaceX rescuing Boeing Starliner astronauts trapped on the International Space Station and concerns about quality control and mechanical malfunctions, including a new federal safety alert for its 737s.