Boeing faces new turmoil as workers strike

The move halts production of Boeing's best-selling plane as the company grapples with long production delays and mounting debt.

This is the first strike by Boeing workers since 2008 and began just weeks after newly appointed CEO Kelly Ortberg aimed at restoring confidence in the aircraft manufacturer after a series of recent incidents.

About 33,000 Boeing workers in Seattle and Portland voted on whether to strike or accept a new contract.

The new Boeing contract commits to additional investment in the Puget Sound region and a 25 percent wage increase for workers over four years. The International Association of Machinists and Aerospace Workers (IAM), which represents workers, hopes the deal will avert a major strike.

IAM leaders say the current deal is the best that could be achieved without a strike. But workers are largely unhappy with the 25 percent pay increase, saying it falls short of their demands for a 40 percent raise and the contract’s elimination of annual bonuses, which are important to many workers. They say a strike would force Boeing management to make bigger concessions.

Other points of contention include the contract not restoring pension benefits, as well as Boeing's uncertain commitment to future projects in the Seattle area.

Boeing's new CEO Kelly Ortberg warned the strike would undermine the company's recovery efforts and damage relationships with customers.

Previous strikes, such as the one in 2008, have lasted for dozens of days and cost Boeing between $3 billion and $3.5 billion. Analysts say the disruption could hamper Boeing’s recovery efforts this time around, but they expect the company to have experience in resolving the issue more quickly than it has in past strikes.