Boeing strike ends as workers back 38% pay rise deal

Boeing workers have voted to accept the aviation giant's latest pay offer, ending a damaging seven-week-long walkout.

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.

Under the new contract, they will get a 38% pay rise over the next four years.

The walkout by more than 30,000 unionised Boeing workers started on 13 September, leading to a dramatic slowdown at the plane maker's factories and deepening a crisis at the company.

The IAM union said that 59% of the striking workers voted in favour of the new deal, which also includes a one-off $12,000 (£9,300) bonus, as well as changes to workers' retirement plans.

"This is a victory. We can hold our heads high," union leader Jon Holden said as he announced the results of the ballot.

The union had previously called for a 40% pay increase and workers had rejected two previous offers from the company.

Last month, acting US Labor Secretary Julie Su flew to Seattle and to help with the negotiations, in a sign of how seriously the White House was taking the strike at one of the country's most important companies.

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 to 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.