Boeing workers to strike as 25% pay rise rejected

Almost 95% of union members who voted in the ballot rejected the pay deal

Virginia (USA), September 13 — Boeing workers are 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 - are set to down their tools from midnight Pacific Time (0700 GMT) on Friday.

The walkout is another setback for the firm, 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 pay deal, with 96% backing strike action.

"Our members spoke loud and clear tonight," said Jon Holden, president of the International Association of Machinists and Aerospace Workers District 751.

"We strike at midnight," he added.

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,” Mr Waldon added.

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.