(Finance) – The West Coast Workers of the United States of Boeingan American giant that produces aircraft for both civil and military use, will go on strike after rejecting the agreement proposed by the companyThe strike, scheduled to begin at midnight Pacific time, is expected to shut down operations in the Seattle area, home to most of Boeing’s commercial airplane production.
Members of the International Association of Machinists and Aerospace Workers (IAM) voted to 96% in favor of the strike and 94.6% to reject the agreement.
“A strike would jeopardize our shared recoveryfurther eroding our customers’ trust,” new CEO Kelly Ortberg said in a message to employees ahead of the vote.
The deal proposed by Boeing included a 25% general salary increase (less than the 40% requested)a $3,000 signing bonus and a commitment to build Boeing’s next commercial jet in the Seattle area, provided the program launched within the four-year contract.
According to a note from investment bank TD Cowen, a 50-day strike could cost Boeing an estimated between $3 billion and $3.5 billion in cash flowThe last Boeing workers’ strike in 2008 closed plants for 52 days and hit revenues by an estimated $100 million a day.