Close to 30,000 Boeing workers in the Seattle, Washington, and Portland, Oregon areas walked off the job early Friday after negotiations failed to reach a compromise between Boeing and its employees. This is the first strike at Boeing since 2008 and it comes as Boeing has issues with its new 737 MAX, which is under scrutiny from U.S. regulators and customers.

The workers rejected the new contract offer by overwhelming numbers in the first vote by the International Association of Machinists and Aerospace Workers in 16 years. Nearly 95% of all union members rejected Boeing’s proposal.

Jon Holden, who led negotiations on behalf of the unions, said, “This is about respect, this is about addressing the past, and this is about fighting for our future.”

What Are the Implications of the Boeing Worker’s Strike?

Boeings stock was down 4% in pre-market trading Friday on the stock that has seen a 38% drop since the beginning of 2024. Kelly Ortberg, the new Boeing CEO, proposed a deal that would have included a 25% pay increase over four years. The unions had demanded a 40% increase. Workers have said they are prepared to strike for at least two months.

In 2008, the 52-day strike by Boeing workers cost the company $100 million per day. An extended strike now could cost the company up to $3.5 billion in cash flow, adding to its $60 billion debt. Both sides are eager to return to the negotiating table.

“We’re eager to get back to the table as quickly as we can. This is something that we take one day at a time, one week at a time,” John Holden told reporters.

Image: AP