09:11 AM EST, 11/05/2024 (MT Newswires) -- Boeing ( BA ) shares rose early Tuesday as its factory workers voted in favor of the plane manufacturer's latest labor deal with their union, ending a strike that has been plaguing the company for nearly two months.

Members of the International Association of Machinists and Aerospace Workers union's districts 751 and W24 late Monday voted to ratify the new contract, which includes a 38% general wage increase over a four-year period, or a roughly 44% hike on a compound basis. The IAM represents about 33,000 of Boeing's ( BA ) employees.

"We were pleased to reach a ratified agreement with IAM 751 and W24," Boeing ( BA ) Chief Executive Kelly Ortberg said in a statement. "There is much work ahead to return to the excellence that made Boeing ( BA ) an iconic company."

Boeing ( BA ) shares were up 2% in premarket activity.

The approved proposal also includes a $12,000 ratification bonus, special company contribution of 4% into retirement plans and key job security provisions, among other benefits. IAM-represented employees will be allowed to return to work on Wednesday and must resume work by Nov. 12, according to the plane maker.

"Through this victory and the strike that made it possible, IAM members have taken a stand for respect and fair wages in the workplace," IAM District 751 President Jon Holden and IAM District W24 President Brandon Bryant said in a separate joint statement. "Our members perform high quality and flight critical work for the airplanes we build and deserve a return on their labor investment that provides for the quality of life worthy of that labor."

Boeing's ( BA ) workers have been on strike since Sept. 13 after they rejected the initial labor deal agreed between the company and the union. Last month, IAM members voted 64% against another offer by the company, which proposed to boost wages by 35%.

In October, Boeing ( BA ) reported a wider-than-expected third-quarter loss and disclosed plans to lay off about 10% of its workforce in the coming months. Last week, the company issued an offering of 90 million common shares and $5 billion of depositary shares to raise capital.

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