Boeing Faces Possible Strike Amid Worker Discontent

Boeing may face a strike as early as Friday if its Pacific Northwest factory workers reject a tentative deal. Around 30,000 workers are voting on their first full contract in 16 years, with many demanding higher wages. A strike could cost Boeing $3 billion to $3.5 billion in cash flow.

Boeing faces the threat of a strike this Friday if factory workers in the Pacific Northwest vote to reject a tentative deal. Around 30,000 workers from Seattle and Portland, who produce Boeing's 737 MAX, 767, and 777 jets, are participating in the vote, the first full contract negotiation in 16 years.

A strike will commence if a majority reject the preliminary agreement and at least two-thirds vote to strike, per the International Association of Machinists and Aerospace Workers (IAM). Workers have shown their displeasure through marches and demonstrations, seeking higher wages and better conditions.

According to TD Cowen, a 50-day strike could cost Boeing between $3 billion to $3.5 billion in cash flow. Previously, a 2008 strike halted operations for 52 days, affecting revenue by roughly $100 million daily. IAM President Jon Holden expressed the union's anticipation of a strike due to the significant worker discontent.

Boeing's new CEO, Kelly Ortberg, has urged workers to accept the deal, warning that a strike would jeopardize recovery efforts, customer trust, and future planning. Boeing already faces financial pressure, regulatory scrutiny, and a notable drop in its stock value this year.

The proposed deal includes a 25% wage increase, a $3,000 signing bonus, and a pledge to build the next commercial jet in Seattle if launched within four years. However, some workers are pushing for a wage increase closer to 40% over three to four years and are unhappy about losing an annual bonus.

(With inputs from agencies.)