Boeing US West Coast factory workers accept new contract, ending seven-week strike: Report

The union announced that 59 percent of members supported the contract, which provides a 38 percent pay increase over four years, offering relief to new Boeing CEO Kelly Ortberg after two prior rejections.

"This is a victory. We can hold our heads high," Jon Holden, the union's lead negotiator was quoted as saying by Reuters. "Now it's our job to get back to work," he added.

The conclusion of Boeing's first major strike in 16 years ends a challenging period for the company, which has faced a series of setbacks since a door panel detached from a 737 MAX aircraft mid-flight in January, the report said.

In a message to employees after the vote, Ortberg expressed satisfaction with the union’s decision.

"While the past few months have been difficult for all of us, we are all part of the same team," he said, according to Reuters. "There is much work ahead to return to the excellence that made Boeing an iconic company."

Approximately 33,000 machinists involved in the production of Boeing's popular 737 MAX, 767, and 777 jets have been on strike since September 13, demanding a 40 percent wage increase and the reinstatement of a defined-benefit pension, which was replaced by a 401(k) plan a decade ago.

David Lemon, a Seattle-based equipment calibration worker who voted in favor of the deal, said he was ready to return to work. He noted that with the addition of a 4 percent bonus from the incentive plan, the increase achieved their initial 40 percent target, adding that they had “got there.”

Although the pension plan will not be restored, workers will see an increase in company matching contributions to their 401(k) plans, the report added.

Boeing also committed to building its next aircraft in the Seattle area, a promise union negotiator Holden said was unprecedented.

President Joe Biden and Acting Labor Secretary Julie Su, who assisted in the negotiations, congratulated both parties on the outcome. "We've shown that collective bargaining works," Biden said, Reuters reported.

Boeing credited Su for helping both sides reach an agreement.

Biden's support for unions has been prominent during his presidency, and the union's decision comes just a day before the national election to choose his successor.

Boeing will take several weeks to ramp up plane production and restore cash flow, with 737 MAX production expected to remain in the low single digits per month, significantly below the pre-strike goal of 38 jets monthly, according to the report.

The International Association of Machinists and Aerospace Workers (IAM) stated that workers could return to the production line as early as Wednesday, though Boeing has cautioned that some employees will require retraining after the extended absence.

Analysts estimated that the strike was costing Boeing roughly $100 million per day in lost revenue. Last week, the company raised $24 billion from investors to maintain its investment-grade credit rating.

The union pointed out that members had received only four wage increases of just 1 percent each time over the past eight years.

Boeing projected that the average annual machinist salary would rise from $75,608 to $119,309 by the end of the contract.

Analysts at Jefferies estimate that the pay increases could add $1.1 billion to Boeing's wage expenses over four years, while a $12,000 ratification bonus for each union member may cost the company another $396 million.

With over 26,000 union members casting ballots, turnout for the vote reached nearly 80 percent.