Boeing Machinists agreed to a brand new labor contract Monday, ending a costly seven-week strike that crippled much of the corporate's aircraft production and worsened mounting losses.

Machinists voted 59% in favor of the brand new contract, which incorporates 38% wage increases over 4 years and other improvements.

The approval comes as a relief to Boeing's recent CEO, Kelly Ortberg, who took the highest job in August to steer the corporate through its safety and manufacturing crises. The company raised greater than $20 billion in a stock sale last week to deal with its financial woes after warning it will likely burn money through 2025.

Ortberg said last month that Boeing would cut 10% of its 170,000 employees, including managers, executives and clerks, to chop costs, with layoff notices to be sent out in mid-November. He painted an image of a leaner Boeing that focused on its core industrial and defense businesses.

“Although the last few months have been difficult for all of us, we are all part of the same team. We can only move forward if we listen and work together,” said Ortberg after signing the contract. “There is still much work ahead to return to the excellence that made Boeing an iconic company.”

Boeing will now give you the chance to restart production, which is crucial to the corporate's recovery as the vast majority of the aircraft's price is paid to customers upon delivery. But it should take a while to achieve goal production rates, especially for the 737 Max, Boeing's money cow.

“While ending the strike and returning workers to factories is a significant step in the right direction, resuming the strike will take time,” said Bank of America aerospace analyst Ron Epstein. He said some employees needed to be retrained.

The machinists who construct aircraft corresponding to the best-selling 737 Max, the 777 and the 767 must return to work no later than November 12, the union said. They could return as early as Wednesday.

“Yesterday's resolution of the strike has, in our view, borne little fruit,” Jonathan Root, senior vice chairman at Moody's Ratings, said in an announcement Tuesday. “The challenge remains to address the obstacles that stand in the way of achieving and subsequently maintaining strong positive free cash flow.”

President Joe Biden spoke with union leaders and Boeing's CEO on Tuesday to congratulate them on the deal, the White House said. Acting Labor Secretary Julie Su took part within the negotiations and flew to Seattle to fulfill with the union and the corporate, a number one U.S. exporter and defense contractor.

“This contract provides a 38% wage increase over four years, improves workers’ ability to retire with dignity, and supports equity in the workplace,” Biden said in an announcement. “This contract is also important for Boeing’s future as an important part of America’s aerospace sector.”

It was the machinists' third vote since September, when the 33,000 employees, mostly within the Seattle area, walked off the job after overwhelmingly rejecting a proposal that might have called for a 25% wage increase, far lower than what the union was searching for 40%. They voted against one other watered-down proposal late last month.

“This is a victory. We can hold our heads high,” said Jon Holden, president of District 751 of the International Association of Machinists and Aerospace Workers, as he announced the outcomes late Monday.

According to Boeing, the machinist's salary at the tip of this contract proposal will average $119,309. The first wage increase is 13%. The deal also increases 401(k) contributions and a signing bonus of as much as $12,000, or a mix of a $7,000 bonus and a $5,000 401(k) deposit.

Workers had complained concerning the skyrocketing cost of living within the Seattle area, where most Boeing planes are made.

However, the union had warned that the most recent deal, proposed last week, could also be pretty much as good as employees can expect.

“In every negotiation and every strike, there comes a point where we have gotten everything we could through negotiations and through the restraint of our workforce,” IAM District 751 said in an announcement on the time. “We are at this point now and risk declining or reduced supply in the future.”

RENTON, Washington – Lack of cash Boeing The ongoing strike by machinists fighting for higher wages is facing rising costs, and failure to achieve an agreement could prove much more costly.

In the shadow of a factory outside Seattle where Boeing makes its best-selling planes, striking Boeing machinists told CNBC that they had saved money and brought, or were considering, side jobs in landscaping, moving furniture or working in warehouses to make ends meet if the strike continued for much longer.

The Boeing factory employees' walkout within the Pacific Northwest has just entered its second week. The financial cost of the strike to Boeing will depend upon how long it lasts, but rankings agencies warn that the corporate could suffer a downgrade if the strike drags on too long.

This would further increase the corporate's borrowing costs, that are already $60 billion in debt. Boeing has already burned through about $8 billion this yr following the near-catastrophic failure of a door latch on one among its 737 Max planes in January.

Boeing has not made an annual profit since 2018, and latest CEO Kelly Ortberg is attempting to restore the corporate's repute after months of production crises which have led to deliveries to customers and drained the corporate of liquidity.

At the local union office in Renton, machinists were preparing for what could possibly be an extended strike: union members were carrying in large pallets of water bottles while someone within the kitchen was mixing up an enormous tuna salad to make sandwiches for the employees. Union vans were driving to demonstration sites around Renton and offering picket employees transportation to their bathroom breaks. Burn barrels were providing warmth to the freezing picket lines at night.

Many employees spoke of loving their jobs but apprehensive in regards to the high cost of living within the Seattle area, where most Boeing planes are manufactured.

The median home price in Washington state rose about 142% to $613,000 in 2023, up from $253,800 a decade earlier, in line with the state's Office of Financial Management. That beats the national increase of about 55% during that period, in line with data from the Federal Reserve Bank of St. Louis.

“We cannot afford [to own] a house,” said Jake Meyer, a Boeing mechanic who will work as a driver for a food delivery service during the strike and plans to take odd jobs like moving furniture. Meyer said that although he is striking for higher wages at Boeing, he enjoys working as an aircraft builder.

“I am proud of my work,” he said.

Another Boeing machinist said he saved for months, foregoing things like restaurants and paying three months' mortgage payments in advance.

“I can hold out so long as I want to,” said the worker, who spoke on condition of anonymity.

More than 30,000 Boeing machinists walked off the job at midnight on Sept. 13 after rejecting a tentative labor agreement by nearly 95 percent of the vote — 96 percent favored a strike. They received their last paycheck on Thursday, and their health insurance expires Sept. 30. They will soon receive $250 a week from a union strike fund.

The strike is costing Boeing about $50 million a day, estimates Ron Epstein, an aviation analyst at Bank of America. The strike has halted production of most Boeing planes, and that's impacting the aerospace giant's vast network of suppliers, some of which have already been ordered to halt deliveries. Boeing is still producing 787 Dreamliners at its non-union plant in South Carolina.

The fight pits Boeing against its workforce, which is demanding wage increases and other improvements. Boeing's latest offer included across-the-board wage increases of 25% over four years and was endorsed by the machinists' union, the International Association of Machinists and Aerospace Workers District 751.

The workers said they were demanding wage increases of around 40%, as proposed by the union, as well as annual bonuses and the restoration of pensions lost over a decade ago.

Boeing and the union sat at the bargaining table this week, but both Boeing and union negotiators expressed disappointment at the lack of progress.

“We proceed to value the problems you identified within the recent survey,” union negotiators wrote to their members on Wednesday. “However, we’re deeply concerned that the corporate has failed to deal with your most significant concerns. No meaningful progress was made in today's talks.”

Ortberg, who has been in office for just six weeks, announced this week the temporary furlough of tens of thousands of Boeing employees, including managers and executives, on the heels of the announcement of a hiring freeze and other cost-cutting measures made this week.

“During mediation with the union this week, we continued our serious efforts to have interaction the union's bargaining committee in meaningful negotiations to deal with the feedback we received from our team,” Ortberg said in a note to employees Friday.

“While we’re disillusioned that the talks didn’t end in greater progress, we remain committed to reaching an agreement as quickly as possible that recognizes the labor of our employees and ends the work stoppage within the Pacific Northwest,” Ortberg wrote.

The strike, which also includes Boeing machinists in the Seattle area, Oregon and several other locations, is just the latest in a series of labor disputes in recent years that have also involved actors, auto workers, longshoremen and airline employees, all of whom have won pay raises after striking or threatening to strike.

The Biden administration has encouraged Boeing and the union to reach an agreement.

“I feel each parties want to return to an answer here, and I hope there’s an answer that is sensible for employees and works for an organization that actually needs to seek out its way forward on so many fronts,” Transportation Secretary Pete Buttigieg told CNBC's “Squawk Box” on Thursday.

Boeing is facing a tight labor market. During the last strike in 2008, which lasted less than two months, the company was in a better financial position and there was less competition for jobs in the region.

A Boeing supplier told CNBC that furloughing or laying off employees would cause problems months later because it takes so long to train employees on such technical and detailed tasks.

Boeing and its suppliers laid off thousands of workers during the pandemic and have since struggled to hire and train new workers in time to cope with the rebound in air traffic and rising demand for aircraft.

“We're in an environment where it's hard to seek out expert, technical employees without delay, particularly in aerospace and defense,” said Bank of America's Epstein. “So what do you do to not only retain them but attract them? If they really need a pension, perhaps that provides you a competitive advantage over people attempting to recruit talent.”