DALLAS — Boeing's West Coast factory workers are set to strike after an overwhelming 96% vote in favor of halting production. 

The vote involves about 30,000 workers in the Seattle and Portland areas who produce Boeing's 737 MAX jets. 

The strike follows dissatisfaction with the latest contract offer, which included a 25% wage increase, a US$3,000 signing bonus, and a promise to build Boeing’s next commercial jet in the Seattle region, contingent on program launch within the contract’s four-year duration.

Despite these terms, most workers rejected the deal, with 94.6% voting against it, citing demands for a 40% pay increase and opposition to losing an annual bonus. While the International Association of Machinists and Aerospace Workers (IAM) leadership had recommended accepting the offer, the workers were relentless in their stance. 

On Sunday, Boeing reached a landmark tentative agreement with the IAM Districts 751 and W24, which represent over 33,000 Boeing employees in Washington, Oregon, and California. The IAM deal covered significant wages, healthcare, retirement benefits, and employee work-life balance improvements.

At the time, Boeing Commercial Airplanes President and CEO Stephanie Pope highlighted Boeing’s continued investment in the Puget Sound region, where employees would build the company’s next new airplane. 

Today, Boeing’s CEO, Kelly Ortberg, who assumed the role in August, echoed the IAM leadership, urging West Coast factory workers in an 11th hour appeal to approve the agreement, but preparations for the strike began before the vote concluded.

The Boeing plant in Charleston is expected to remain unaffected by the strike, as its workforce is not unionized. Interestingly, the strike could have an unexpected benefit for Boeing by providing the supply chain a much-needed opportunity to catch up on delays.

This labor action, the first in 16 years, underscores the growing tensions between Boeing and its workforce as the company navigates its financial struggles and production challenges. The strike action is set to start today Friday at midnight.