machinists plan to begin returning to work Sunday after ratifying a new four-year contract.
Boeing early Sunday announced the ratification, which ends a nearly two-month strike by some 27,000 employees represented by the International Association of Machinists and Aerospace Workers (IAM). The strike had stopped production of Boeing's commercial planes.
Boeing said the contract calls for general wage increases of 15% over four years, an immediate 16% pension increase and lump-sum payments of at least $8,000 over the life of the agreement.
"We're looking forward to having our team back together to resume the work of building airplanes for our customers," said Scott Carson, who heads Boeing's Commercial Airplanes unit. "This new contract addresses the union's job security issues while enabling Boeing to retain the flexibility needed to run the business.
The union said its members voted to ratify the contract by 74%.
"This contract gives the workers at Boeing an opportunity to share in the extraordinary success this Company has achieved over the past several years," said Mark Blondin, aerospace coordinator at IAM. "It also recognizes the need to act with foresight to protect the next generation of aerospace jobs. These members helped make Boeing the company it is today, and they have every right to be a part of its future."
Boeing shares gained $1.72 Friday to close at $52.42.
This article was written by a staff member of TheStreet.com.