Boeing, a major American aerospace and defence  company known for manufacturing commercial airplanes, rockets, and satellites, has reached a deal with its largest union, bringing an end to one of the most financially impactful strikes in recent U.S. history. 

Members of the International Association of Machinists and Aerospace Workers (IAMAW) voted on Monday to approve a new contract, concluding a dispute that had begun on September 13 and disrupted Boeing’s operations.

The union, which represents approximately 33,000 employees primarily in the Seattle region where Boeing’s commercial aircraft are manufactured, approved the contract with 59 percent of the vote. 

Workers had previously rejected two earlier proposals from Boeing. 

The newly accepted contract includes a cumulative wage increase of over 43 per cent over the next four years, significantly more than the 27 per cent raise in the initial offer.

District 751 president Jon Holden praised the outcome, calling it a “victory” for the workers, adding, “You stood strong, you stood tall and you won.” Union members are expected to return to their jobs no later than November 12.

The strike had far-reaching financial consequences for Boeing, which has faced production delays at a time of significant challenges. 

The aerospace company is still recovering from the prolonged grounding of its 737 MAX and other supply chain difficulties exacerbated by the pandemic.

Boeing CEO Kelly Ortberg, who took on the role in August, expressed satisfaction with the resolution of the strike.

“Though the past few months have been tough for all of us, we are all part of the same team,” Ortberg said in a statement. “Our future success depends on working together and truly listening to each other.”

Mr Ortberg’s leadership coincided with major restructuring at Boeing, including the announcement of 17,000 job cuts, amounting to 10 per cent of the company’s global workforce.