Boeing 737 MAX production faces fresh turbulence as 96% workers at US factories vote for strike

Boeing workers at its US West Coast factories have gone on strike, bringing production of the company's best-selling jets to a standstill. The strike, which began early September 13, comes at a challenging time for the aerospace giant as it grapples with ongoing production delays and significant debt, as per a Reuters report.

The International Association of Machinists and Aerospace Workers (IAM), representing approximately 30,000 employees, voted overwhelmingly in favour of the strike. This marks the first such action since 2008 and occurred just weeks after Kelly Ortberg took the helm as CEO, tasked with rebuilding trust in the company following a serious safety incident in January, the report added.

Union leader Jon Holden emphasised the significance of the strike, stating, "This is about respect, this is about addressing the past, and this is about fighting for our future." The decision to strike was met with enthusiasm from union members, who chanted "Strike! Strike! Strike!" upon hearing the announcement, as quoted in the report.

Union leader Jon Holden emphasised the significance of the strike, stating, "This is about respect, this is about addressing the past, and this is about fighting for our future." The decision to strike was met with enthusiasm from union members, who chanted "Strike! Strike! Strike!" upon hearing the announcement, as quoted in the report.

Contract deal rejected 

CEO Ortberg had proposed a contract deal including a pay rise of 25 per cent over four years, far lower than the 40 per cent workers had demanded.

Boeing acknowledged the clear message sent by the vote and expressed a willingness to return to negotiations. The rejected contract deal also included a signing bonus, and a commitment to build Boeing's next commercial jet in the Seattle area under certain conditions.

The strike poses multiple challenges for Boeing, including how to secure its factories and respond at the bargaining table. If prolonged, the work stoppage could have far-reaching effects on Boeing's finances, as well as impacting airlines and suppliers in the aviation industry.

Air India CEO Campbell Wilson noted that Boeing's 737 MAX deliveries to his airline were already facing delays due to regulatory scrutiny and industry-wide supply chain issues, even before the strike announcement, as per the report.

Financial analysts estimate that a 50-day strike could cost Boeing between $3 billion and $3.5 billion in cash flow. The company's last major strike in 2008 lasted 52 days and reportedly cost around $100 million per day in lost revenue, the report added.

(With inputs from Reuters)