Boeing Factory Workers Stage First Strike Since 2008; Walkout May Cost Company $1.5 Billion [Video]

Boeing has been hit with another blow as factory workers staged a massive walkout shortly after midnight Friday. 

Frustrated factory workers launched a major strike just after midnight, halting production of the company’s most profitable planes. The strike followed the workers’ overwhelming rejection of a new labor contract, shaking an already troubled aerospace giant struggling with safety and production issues. This is the first factory strike since 2008.

An impressive 94.6% of workers in Seattle and Oregon voted against the proposed agreement, with 96% supporting the strike, far exceeding the two-thirds required.  IAM District 751 President Jon Holden led the charge, accusing Boeing of “unfair labor practices,” including claims of discriminatory conduct and unlawful surveillance.  Boeing has yet to respond.

CFO Brian West acknowledged the strike would disrupt production and deliveries but did not specify the financial impact, though they are sure to be profound. Boeing’s stock dropped nearly 4% on Friday, and agencies like Moody’s and Fitch have warned of potential credit downgrades if the strike persists.

The rejected contract offered a 25% wage increase over four years, along with improved healthcare and retirement benefits.  However, it fell short of the union’s demand for a 40% wage hike, leaving workers outraged over rising living costs.

CEO Kelly Ortberg, only five weeks into the role, had urged workers to avoid the strike.  Even the promise to build Boeing’s next commercial jet in Seattle couldn’t sway them.  Experts warn the 30-day strike could cost Boeing $1.5 billion, severely affecting supply chains, while the FAA and the White House monitor the situation closely.