Canadian Airbus A220 jet assembly workers approved a five-year contract with more than three-quarters of votes in favor, their union said late on Wednesday, ending fears of a lockout at the planemaker's Montreal-area plant.

Airbus SE reached an agreement with its employees building the single-aisle A220 jet in Canada after they voted in favor of a mediator’s recommendations, averting a threatened lockout.

The union representing 1,300 workers at Airbus Canada says they have ratified a new five-year contract. The International Association of Machinists and Aerospace Workers says workers voted 77 per cent in favour of the agreement that included adjustments recommended by a conciliator.

Airbus is ready to lock out its Canadian A220 workers if a latest contract offer is rejected on Wednesday, according to sources and a conciliator's recommendations seen by Reuters. Airbus and the International Association of Machinists and Aerospace Workers union (IAM) agreed to conciliation after the company's estimated 1,