Boeing workers reject contract, set to strike at midnight

Boeing (NYSE:BA) workers overwhelmingly voted to reject a proposed labor contract and are set to strike, with the work stoppage beginning at midnight.

Approximately 33,000 members of the International Association of Machinists and Aerospace Workers (IAM) voted 96% in favor of the strike, far exceeding the two-thirds majority required to initiate a walkout.

The rejected contract included a 25% raise over four years and the union argued that these terms fell short of addressing the rising cost of living, as they sought raises closer to 40%.

This strike adds to the already turbulent times at Boeing (BA) after the emergency exit blowout, CEO step down, Senate hearings, and more.

The vote is a blow to CEO Kelly Ortberg, who urged the union members not to vote in favor of a strike as it would disrupt production and its struggling factory operations.

“Their tireless efforts have been on display throughout this entire process. Now, they will regroup and begin planning the next steps on securing an agreement that our membership can approve,” the IAM said in a statement.

A 30-day strike could cost almost $1.5B to Boeing (BA) and have an impact on supply chains, a CNBC report cited an analyst. The work stoppage will impact the giant’s aircraft production, including its best-selling 737 Max.