Boeing workers have gone on strike after overwhelmingly rejecting a tentative deal negotiated between union representatives and the company.
The deal, which included a 25% pay rise, was turned down by 95% of union members who voted, and 96% backed the strike action.
Over 30,000 workers in the Seattle and Portland areas, who produce planes such as the 737 Max and 777, began their walkout at midnight Pacific Time (0700 GMT) on Friday.
This marks another setback for Boeing, which is grappling with financial losses and a tarnished reputation following safety issues, including two fatal crashes.
The strike is a significant challenge for Boeing’s new CEO, Kelly Ortberg, appointed just last month with the goal of turning the company around.
Union president Jon Holden of the International Association of Machinists and Aerospace Workers (IAM) District 751 said, “Our members spoke loud and clear tonight… we strike at midnight.”
Boeing acknowledged the workers’ decision, stating, “The message was clear that the tentative agreement we reached with IAM leadership was not acceptable to the members,” while reiterating its readiness to return to negotiations.
Despite union leaders recommending the deal, which included the pay raise and a commitment from Boeing to build its next commercial plane in Seattle, workers initially sought a 40% wage increase.
CEO Ortberg had warned that a strike would jeopardize Boeing’s recovery, but the workers pressed on.
The current contract, originally negotiated in 2008 after an eight-week strike, expired at midnight on Thursday.
That previous strike cost Boeing around $1.5 billion a month. According to Greg Waldron, Asia Managing Editor at FlightGlobal, “It’s never a good time for a strike… the current situation makes it even more problematic.”
The outcome now depends on how long the walkout continues, with airline executives awaiting their 737 Max orders closely monitoring the situation.
Boeing has faced additional legal and financial pressures, including a $244 million criminal fine related to the 737 Max crashes and ongoing lawsuits after an incident with an Alaska Airlines plane in January.
Source-BBC
