Boeing’s defense workers are set to strike for first time since 1996

Boeing (NYSE:BA) is facing the prospect of its first strike in nearly 30 years at its defense manufacturing facilities near St. Louis, after union members rejected a revised labor agreement.

Roughly 3,200 members of the International Association of Machinists and Aerospace Workers are preparing to walk off the job just after midnight local time, following a vote against a proposal that included a 20% wage increase and higher retirement contributions. The last strike at these plants occurred in 1996 and lasted 99 days.

The potential work stoppage threatens to add more strain to Boeing’s (NYSE:BA) defense and space division, which accounts for about 36% of the company’s overall revenue and is currently undergoing a major restructuring effort.

Employees at the affected sites assemble military aircraft such as the F-15 fighter jet and T-7 trainer, as well as missiles, munitions and parts used in Boeing’s (BA) 777X commercial airliners.