Boeing workers end 7-week strike after agreeing to 38% pay hike

Boeing employees in the United States have voted to accept the aviation giant’s latest pay proposal, ending a damaging seven-week strike.

The new contract provides for a 38% pay increase over the next four years.

The International Association of Machinists and Aerospace Workers (IAM) union says striking workers could begin returning to work as early as Wednesday or as late as November 12.

A strike by some 30,000 Boeing workers began on September 13, leading to a dramatic slowdown at the aircraft maker’s factories and deepening the company’s crisis.

IAM said 59% of striking workers voted in favor of the new deal, which also includes a $12,000 (£9,300) lump sum bonus and changes to workers’ retirement plans.

Union leader John Holden said: “Through this victory and the strike that made it possible, IAM members took a stand for respect and fair pay in the workplace.”

The union had previously demanded a 40% wage increase, and the workers had rejected two previous offers from the company.

“The past few months have been difficult for all of us, but we are all part of the same team,” Boeing CEO Kelly Ortberg said.

“A lot of work needs to be done to restore Boeing to the excellence that made it an iconic company.”

In a sign of how seriously the White House is taking the strike against one of the country’s most important companies, Acting Labor Secretary Julie Su flew to Seattle last month to help with negotiations.

Boeing is looking to shore up its finances and end a strike that has now cost it nearly $10 billion, according to consulting firm Anderson Economic Group.

In October, the company’s commercial aircraft business reported a $4 billion operating loss for the three months to the end of September.

The company launched a stock sale last week to raise more than $20 billion.

The move came after warnings that a prolonged strike could result in Boeing’s credit rating being downgraded and raising borrowing costs.

The company announced last month that it would lay off about 17,000 employees, with the first layoff notices expected to be issued in mid-November.

Boeing’s latest crisis erupted in January when part of its plane exploded dramatically in midair.

The company’s space business also suffered reputational damage after its Starliner spacecraft was forced to return to Earth without astronauts on board.