Boeing workers to go on strike after hard work rejected a deal reached between union representatives and the plane maker that included a 25% wage increase.
More than 30,000 workers – who produce planes including the 737 Max and 777 in the Seattle and Portland areas – have put down their tools since midnight Pacific Time (0700 GMT) on Friday.
The cash flow is another hurdle for the company, which is facing steep losses as it struggles to repair its reputation after a series of safety problems, including two fatal accidents.
It also has a big impact on Boeing new chief Kelly Ortbergwho was appointed last month with the aim of transforming this business.
About 95% of union members voted in a referendum rejecting the wage deal, while 96% supported the strike.
“Our members spoke loud and clear tonight,” said Jon Holden, president of the International Association of Machinists and Aerospace Workers (IAM) District 751.
“We strike at midnight,” he added.
Boeing said in a statement: “The message was clear that the agreement we made with the IAM leadership is not acceptable to the members.
We are committed to rebuilding our relationship with our employees and the union, and we are ready to return to the table to reach a new agreement.”
Earlier this week, union representatives advised members to support the proposed agreement.
Along with a 25% wage increase over four years, the first deal rejected by the workers includes Boeing’s commitment to build its next commercial airliner in the Seattle area if the project begins within the life of the contract.
The union initially focused on improving labor costs, including a 40% wage increase.
Mr. Ortberg did a last request to workers before the vote, warning that the strike would put “the sustainability of the company at risk”.
The current contract between Boeing and the union was reached in 2008 after an eight-week strike.
In 2014, the two sides agreed to extend the agreement, which is due to expire at midnight on Thursday.
“It’s not a good time to strike, at least from management’s point of view, the current situation makes it very problematic,” said Greg Waldron, Managing Editor for Asia at aviation news website FlightGlobal.
“However, a lot will depend on how long the strike lasts. Airline officials with 737 Maxes on order will be watching this closely,” Mr Waldon added.
In July, Boeing agreed to plead guilty to fraud and pay criminal penalties of up to $244m (£190m) in connection with the accidents that killed two of its 737 Max planes more than five years ago.
It is also facing other lawsuits and investigations after the mid-January blowout of a door plug on a new Alaska Airlines plane.
In addition to mounting financial losses, the plane maker has had to slow down assembly lines due to the 737 Max production cap imposed by the US Federal Aviation Administration.
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