Boeing workers in Washington state and Oregon went on strike Friday, bringing construction of Boeing’s 737 Max planes to a halt.
Boeing’s stock prices — already battered by a chain of events that began when the door to a Boeing jet blew off in midair — dropped 2.3 percent on Friday, according to Reuters.
The strike is the company’s first since 2008.
Pay was a top issue in the talks. Boeing offered workers a 25 percent pay hike over four years; workers wanted 40 percent.
BREAKING: @Boeing machinists vote to STRIKE, effective immediately. This means 32,000 @IAM751 and W24 members are on the picket lines starting TONIGHT. Vote to strike was 96% for it pic.twitter.com/gBUKmkRYOn
— Ryan Simms (@RyanTVnews) September 13, 2024
About 30,000 members of the International Association of Machinists and Aerospace Workers are now staffing picket lines after 96 percent of those voting on the contract voted for the strike.
“This is about fighting for our future,” said Jon Holden, lead negotiator for the union.
Holden said the union was ready to go back to the table. Boeing offered a similar sentiment.
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“The message was clear that the tentative agreement we reached with IAM leadership was not acceptable to the members. We remain committed to resetting our relationship with our employees and the union,” the company said.
New Boeing CEO Kelly Ortberg had urged workers to accept the contract on the grounds that a strike could further damage the company, according to CNBC.
Reuters reported that if workers strike for very long, the company would add to its roughly $60 billion in debt.
According to The New York Times, citing an estimate from Cai von Rumohr, a research analyst at TD Cowen, if this strike lasts as long as 2008’s 50-day walkout, it would cost Boeing at least $3 billion.
Even before the strike, production of the 737 Max was behind schedule at the Renton, Washington, factory where they are made.
The slowdown is linked to quality improvements the company has needed to make after the January incident where a 737 Max lost a panel in midair.
Fitch warns extended Boeing $BA strike could lead to credit rating downgrade, posing operational and financial risks to the planemaker.
— AS Research (@alertscreener) September 13, 2024
On Friday, Boeing CFO Brian West said the strike will “jeopardize” Boeing’s recovery if it lasts very long, according to CNBC.
West did not discuss whether the strike could impact plans to produce 38 planes per month by the end of the year.
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