Boeing Co (NYSE:BA) faces yet another challenge as Washington state factory workers voted overwhelmingly in favor of a strike mandate, amid the workers' demand for a 40% raise during their first full negotiation with Boeing in 16 years.
Union members, representing around 30,000 workers who manufacture Boeing's 737 MAX and other jets, had cast their votes in Seattle's T-Mobile Park.
The mandate, which has more than 99% approval, highlights the workers' determination. However, Reuters reported that they cannot strike before their contract expires on September 12.
Boeing's labor negotiations are unfolding as the company grapples with losing market share to Airbus SE (OTC:EADSY) and dealing with a crisis following a mid-air incident involving Alaska Air Group Inc's (NYSE:ALK) 737 MAX and other legal issues.
North American unions have leveraged tight labor markets to secure substantial contracts, with pilots, auto workers, and others achieving significant raises.
Also Read: Boeing's 737 MAX Crisis Ripple Effects Disrupt Airlines, Suppliers
Union local president Jon Holden of the International Association of Machinists and Aerospace Workers (IAM) criticized Boeing's executive decisions, stating they jeopardize workers' livelihoods.
Holden emphasized the importance of the vote, noting it empowers the negotiating committee and sends a powerful message.
Boeing, referencing an earlier statement, expressed confidence in reaching a deal that meets both employee needs and business realities.
The strike mandate allows the union to allocate funds for potential future strikes, with workers ready to take action if necessary.
Boeing employs over 66,000 people in Washington state, contributing to programs like the MAX, 767, and 777 jets.
Boeing stock has lost more than 12% in the last 12 months. Investors can gain exposure to the stock via IShares U.S. Aerospace & Defense ETF (BATS:ITA) and Invesco Aerospace & Defense ETF (NYSE:PPA).
Price Action: At the last check on Thursday, BA shares were trading higher by 0.09% at $184.99 in the premarket.
Read Next:
- Judge Allots Time For Boeing 737 MAX Crash Victims' Relatives To Object Plea Deal: Report
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock