Boeing workers are set to go on strike after they overwhelmingly rejected a tentative deal between union representatives and the plane maker that included a 25% pay rise.
More than 30,000 workers – who produce planes including the 737 Max and 777 in the Seattle and Portland areas – could join the walkout which is set to start in a few hours.
It is yet another setback for the aviation giant, which is facing deepening financial losses as it struggles to repair its reputation after a series of safety issues, including two fatal crashes.
It is also a major blow for Boeing’s new chief executive Kelly Ortberg, who was appointed last month with a mission to turn the business around.
Almost 95% of the union members who voted in the ballot rejected the deal, with 96% backing strike action.
Earlier this week, union representatives advised members to support the tentative deal.
Mr Ortberg also made a last-ditch plea to workers, warning that a strike would put the company’s “recovery in jeopardy”.
“It’s never a good time for a strike, at least from the perspective of management, the current situation makes it even more problematic,” said Greg Waldron, Asia Managing Editor at aviation news website FlightGlobal
“Still, a great deal will depend on how long the strike lasts. Airline CEOs with 737 Maxes on order will be watching this closely.”
As well as a 25% pay rise over four years, the preliminary agreement that workers rejected included a commitment from Boeing to build its next commercial plane in the Seattle area if the project started during the lifetime of the contract.
The union initially targeted a number of improvements to workers’ packages, including a 40% pay rise.
The current contract between Boeing and the unions was reached in 2008 after an eight-week strike.
In 2014, the two sides agreed to extend the deal, which is due to expire at midnight on Thursday.
