Boeing Stock Slides as Union Rejects Deal, Kicks Off First Strike in 16 Years

Boeing (BA) shares fell in pre-market trading Friday as the company’s largest labor union partner voted to reject Boeing’s latest contract offer and started its first strike in over a decade, shutting down production at dozens of Boeing’s facilities.

Members of the International Association of Machinists and Aerospace Workers (IAM) in district 751 and W24, which represents thousands of Boeing employees across Washington, Oregon, and California, voted 94.6% in favor of rejecting the contract, and 96% in favor of striking late Thursday. The workers officially set down their tools at midnight and started picketing at facilities that manufacture several Boeing planes like the 737 Max.

“We are incredibly proud of the hard work and dedication shown by the negotiating teams from District 751 and W24 and the unwavering solidarity of our membership,” the union said Friday. “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.”

Boeing Says It’s Ready To Go Back To Bargaining

In response to Thursday’s vote and ensuing strike, Boeing said the union’s “message was clear,” and that the company is committed to “resetting our relationship with our employees and the union.” Boeing said it looks forward to returning to the bargaining process.

Workers expected larger raises than the 25% over four years included in Boeing’s latest offer and were unhappy with the plan cutting annual bonuses, Bloomberg reported. The union has operated on the same contract with several extensions since 2008.

Boeing shares dropped close to 4% in pre-market trading Friday following the news.