Boeing strike ends

Boeing workers have voted to accept the aviation giant's latest pay offer, ending a damaging seven-week-long walkout. Under the new contract, they will get a 38 percent pay rise over the next four years.

Striking workers can start returning to their jobs as early as Wednesday, or as late as 12 November, the International Association of Machinists and Aerospace Workers (IAM) union says. The walkout by around 30,000 Boeing workers started on 13 September, leading to a dramatic slowdown at the plane maker's factories and deepening a crisis at the company.

IAM said 59 percent of striking workers voted in favour of the new deal, which also includes a one-off $12,000 bonus, as well as changes to workers' retirement plans. "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 percent 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 sign of how seriously the White House took the strike at one of the country's most important companies, acting US Labor Secretary Julie Su flew to Seattle last month to help with negotiations. Boeing has been trying to shore up its finances and end the strike, which has now cost it nearly $10bn, according to consulting firm Anderson Economic Group.

In October, its commercial aircraft business reported operating losses of $4bn for the three months to the end of September. Last week, the firm launched a share sale to raise more than $20bn. It came after warnings that a prolonged strike could lead to downgrades of Boeing's credit rating, which would make it more expensive for it to borrow money.

Last month, the firm said it would lay off around 17,000 workers, with the first redundancy notices expected to be issued in mid-November.​​​​​​​ The latest crisis at Boeing erupted in January with a dramatic mid-air blowout of a piece of one of its passenger planes.​​​​​​​ Its space business also suffered a reputational hit after its Starliner vessel was forced to return to Earth without carrying astronauts.

Agencies