Boeing could face strike as workers push back on tentative contract

Boeing (NYSE:BA) workers on Thursday will vote on approving a tentative labor contract reached with the aircraft maker or go on strike as early as Friday.

Under the tentative deal, Boeing (BA) would raise wages by 25% over four years and commit to build its next airplane to replace the workhorse 737 in the Pacific Northwest, among other terms.

But many workers were unhappy with the deal as they had been seeking a 40% wage hike over the contract period and the reinstatement of a pension plan that was scrapped in 2014.

Around 30,000 workers who work on the manufacture of 737 MAX, 767 and 777 planes and are members of the International Association of Machinists and Aerospace Workers will vote on their first full contract in 16 years.

Work stoppage will happen on Friday if a majority vote to reject the preliminary deal and at least two-thirds vote to strike. “The response from people is it’s not good enough,” said Jon Holden, president of union IAM District 751. “I think it will be voted down, and our members will vote to strike.”

The union negotiations are a major test for Boeing’s (BA) new CEO Kelly Ortberg, who took over in August and is tasked with improving the company’s safety and quality culture.

“For Boeing (BA), it is no secret that our business is in a difficult period, in part due to our own mistakes in the past,” Ortberg told employees. “Working together, I know we can get back on track, but a strike would put our shared recovery in jeopardy.”