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Last Updated: Friday, 30 September 2005, 06:22 GMT 07:22 UK
Boeing workers approve pay offer
Boeing worker Charlie Grieser celebrates the result of the vote
Boeing workers overwhelmingly voted to back the proposals
Workers at US aircraft giant Boeing have overwhelmingly voted to back a revised offer on pay and conditions, bringing to an end a four week strike.

Boeing reached a deal with unions after pledging to lift pension payments and cut plans to limit healthcare cover.

Almost 20,000 Boeing machinists at plants in Kansas, Oregon and Washington state downed tools at the start of this month, delaying plane deliveries.

The stoppages could cost Boeing more than $2bn (�1.1bn), analysts estimate.

'Union victory'

More than 80% of unionised Boeing machinists voted to back the proposals.

Although staff are not required to resume work until 12 October, many are expected to return on Friday.

Our focus now shifts to ensuring a smooth restart of our production system
Alan Mulally, Boeing

Workers said they believed that union representatives had secured vital concessions over healthcare and pension payments.

"To me, this is a win," said Kent Sprague, a machinist who backed the proposals.

"I am little disappointed that Boeing didn't offer this initially."

Bonus payments

The three-year deal was reached after Boeing pledged not to make changes to its healthcare programme, despite rising costs.

It also agreed to keep offering medical benefits to retired workers.

The company will also pay more in pensions to union members, increasing the monthly payout to $70 per month for every year worked, up from $60.

Workers will also receive an 8% bonus in the first year, plus $3,000 in each of the next two years.

The company also dropped plans to link incentive payments to whether the company meets financial targets.

Restarting production

Boeing said it was pleased about the outcome of the vote while stressing that the financial terms of the agreement were similar to those originally rejected by unions.

"Our focus now shifts to ensuring a smooth restart of our production system and a return to a steady flow of airplane deliveries to our customers," said Alan Mulally, president and chief executive officer of Boeing Commercial Airplanes.

The strike has caused a delay in deliveries of more than 20 planes.


SEE ALSO:
Boeing reaches deal with strikers
26 Sep 05 |  Business
Boeing machinists stage walk-out
02 Sep 05 |  Business
Chinese plane sale boosts Boeing
08 Aug 05 |  Business
Boeing raises earnings forecast
27 Jul 05 |  Business
Scandal-hit Boeing gets new boss
30 Jun 05 |  Business


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