On Monday night, 33,000 Boeing workers, represented by the International Association of Machinists and Aerospace Workers (IAM) Districts 751 and W24, voted to ratify a new four-year labor contract with the US planemaker, effectively ending the 53-day labor action. This is a big relief for Boeing executives, who have protected the company's investment-grade credit rating at all costs during the labor action. 

About 59% of IAM members voted in favor of the new labor deal, which includes a 43.65% compounded wage increase—38% before compounding—over the contract's four-year lifespan. 

"This was a defining moment tonight," IAM District 751 president Jon Holden said, adding, "This is a victory. We stood strong, we stood tall, we won." He noted that more than 26,000 votes had been cast, adding, "I just want to get our members back in the factory."

Here are the highlights of the new labor contract:

"For many frontline Boeing workers in the IAM Union, the terms of this contract will be life-changing," IAM Western Territory General Vice President Gary R. Allen said. 

The ratification vote comes days after IAM District 751 told members on X to "lock in these gains and confidently declare victory." 

In markets, Boeing shares rose nearly 2%. However, on the year, shares are down 40.5%, the worst annual return since the 2008 GFC.

The nearly two-month labor action has taken a financial toll on Boeing, with production lines of its commercial jets shuttered on the West Coast. Last week, the company announced a $21 billion capital raise to offset the cash drain and strengthen its balance sheet to protect its prized investment-grade credit rating.

Besides the union, this resolution is a major win for the new Boeing CEO, Kelly Ortberg, setting the company up for a smoother landing approach to rebuilding the company by focusing on build quality instead of share buybacks and also rid the company of toxic DEI.