Boeing strike ends as workers accept new contract

Boeing strike ends: Boeing's US West Coast factory workers accepted a new contract offer on Monday, ir union said, bringing an end to a bitter seven-week strike that halted most jet production and deepened a financial crisis at troubled planemaker.

union said members voted 59 per cent in favour of new contract, which includes a 38 per cent pay rise spread over four years, easing pressure on new Boeing CEO Kelly Ortberg after two previous offers were voted down in recent weeks.

"This is a victory. We can hold our heads high," Jon Holden union's lead negotiator, told members after results were anunced. "w it's our job to get back to work."

end of first strike in 16 years by Boeing's largest union provides welcome relief for a company that has lurched from one setback to next since a door panel blew off a near-new 737 MAX plane in mid-air in January.

In a mess to Boeing employees after vote, Ortberg said he was pleased union had ratified a deal.

"While past few months have been difficult for all of us, we are all part of same team," he said. "We will only move forward by listening and working toger. re is much work ahead to return to excellence that made Boeing an iconic company."

Around 33,000 machinists who work on best-selling 737 MAX jet, as well as 767 and 777 widebodies, have been on strike since Sept. 13, demanding a 40 per cent w increase and restoration of a defined-benefit pension y lost a decade ago for a 401(k) retirement plan.

"I'm ready to get back to work," said David Lemon, a worker in equipment calibration certification in Seattle who voted in favor of contract.

He calculated that pay hike and a 4 per cent bonus - guaranteed minimum annual payout to reinstated incentive plan - amounted to 40 per cent increase y'd gone after. "We got re," he said.

old pension will t be restored, but workers will receive a bump to company matching contributions for ir 401(k) plans.

Boeing also promised to build next airplane in Seattle area. "y've never given us a commitment" to a new airplane before launch, Holden said.

It will w take weeks to ramp up plane production and boost cash flow, with 737 MAX output expected to languish in single digits per month for some time, according to two people briefed on matter, far short of 38 a month targeted before strike.

Workers can start returning to building planes from Wednesday and must be back to work by v. 12, International Association of Machinists and Aero Workers (IAM) said, although Boeing has warned that some people will have to be retrained due to prolonged period away from factory floor.

strike was costing Boeing around $100 million a day in lost revenue, analysts said, prompting planemaker to raise $24 billion from investors last week in a bid to preserve its investment-grade credit rating.

Ortberg w needs to reset relations with machinists in Pacific rthwest who have used strike to vent anger built up over a decade when ws have lagged inflation and cost of living in Seattle area has soared.

Holden said while re was hard bargaining, workers can rebuild relationship with Boeing leadership.

Boeing has said aver annual machinists' pay at end of new four-year contract will be $119,309, up from $75,608 previously.

pay increase may add $1.1 billion to Boeing's w bill over four years, while a $12,000 ratification bonus for each union member could result in ar $396 million in outflows, according to analysts at Jefferies.

More than 26,000 union members voted, putting turut near 80 per cent. Many union members have been angry at Boeing over previous contract, explaining in part multiple rejection of contract offers.