Boeing announced on Wednesday it had reached a tentative agreement with IAM for a four-year contract extension.
The deal, which now must be ratified by machinists in Washington, Oregon and Kansas, provides significant economic gains for workers, the company said in a release.
Boeing said that the new deal includes the investment to be made for production of the 737 MAX to be built in an existing Boeing facility in Washington state. The deal also would preserve pensions for new workers, includes 2 percent yearly wage increases and raises some health care premiums, according to the company's release.
If the deal is ratified by the IAM Union, it would end a seven-month-long debate.
The National Labor Relations Board filed a lawsuit in April alleging the company had violated labor laws by opening a facility in North Charleston.
Gov. Nikki Haley was outraged by the allegations, saying that the NLRB's lawsuit would cost thousands of jobs in the state.
On Wednesday, Haley congratulated the two parties on the agreement.
"We want to congratulate Boeing for their win today," Haley said in a release. "This needed stability for one of the best companies we have is a huge lift for Boeing employees in our state as we look to celebrate their production of the first South Carolina Dreamliner in the near future."
Haley thanked people across the country and the South Carolina workers for the support they had given to Boeing.
“Finally, today's actions confirm two things we've said all along: the NLRB is nothing more than a rogue agency run by the President's union backers; and that when the feds attack a company in South Carolina they can expect us to fight back, and expect us to win,” Haley said in a statement.