Boeing workers have voted to accept the company’s latest pay proposal, bringing an end to a seven-week-long strike.
The new contract includes a 38% pay increase over the next four years.
According to the International Association of Machinists and Aerospace Workers (IAM) union, striking employees can begin returning to work as early as Wednesday, with a deadline for return set for November 12.
The strike, involving approximately 30,000 Boeing workers, began on September 13 and resulted in a significant slowdown at the aircraft manufacturer’s factories, exacerbating the company’s existing challenges.
IAM reported that 59% of the striking workers voted in favor of the new agreement, which also includes a one-time bonus of $12,000 (£9,300) and adjustments to retirement plans for employees.
“Through this victory and the strike that made it possible, IAM members have taken a stand for respect and fair wages in the workplace,” union leader Jon Holden said.
The union had previously called for a 40% pay increase and workers had rejected two previous offers from the company.
“While the past few months have been difficult for all of us, we are all part of the same team,” said Boeing’s chief executive Kelly Ortberg.
“There is much work ahead to return to the excellence that made Boeing an iconic company.”
In a demonstration of the White House’s concern for the strike at one of the nation’s key companies, Acting U.S. Labor Secretary Julie Su traveled to Seattle last month to assist with negotiations.
Boeing has been working to stabilize its finances while attempting to end the strike, which has already cost the company nearly $10 billion, according to consulting firm Anderson Economic Group.
In October, Boeing’s commercial aircraft division reported operating losses of $4 billion for the quarter ending in September.
Last week, the company initiated a share sale aimed at raising over $20 billion.
This move came in response to warnings that a prolonged strike could result in downgrades to Boeing’s credit rating, making borrowing more expensive for the company.
Additionally, last month, Boeing announced plans to lay off approximately 17,000 workers, with redundancy notices expected to be issued by mid-November.
The latest crisis for Boeing began in January with a significant mid-air incident involving one of its passenger planes.
Furthermore, its space division faced reputational damage when the Starliner vessel was forced to return to Earth without carrying any astronauts.