Seattle - In a significant blow to Boeing, 33,000 aircraft assembly workers across Washington, Oregon, and California walked off the job early Friday after voting overwhelmingly to reject a tentative contract proposal. The strike, announced by the International Association of Machinists and Aerospace Workers, is expected to disrupt the production of Boeing's top-selling airliners and further damage the company's reputation, already marred by financial losses. Boeing shares fell 0.3% in midday trade, contributing to a 38% drop in its stock value this year.

The walkout commenced at 12:01 a.m. PDT, barely three hours after the union announced that 94.6% of its members had rejected the proposed contract and 96% approved the work stoppage, surpassing the required two-thirds majority. While commercial flights will not be affected, the strike poses yet another setback for Boeing, as the striking machinists are responsible for assembling the popular 737 Max, the triple-seven jet, and the 767 cargo plane at facilities in Renton and Everett, Washington. However, production of Boeing 787 Dreamliners in South Carolina may continue unaffected, as they are built by nonunion workers.

The proposed contract offered a 25% wage increase over four years, with salaries potentially rising from an average of $75,608 per year to $106,350 by the end of the contract, according to Boeing. Nevertheless, the deal fell short of the union's original demand for a 40% pay raise over three years, as well as the restoration of traditional pensions that were removed a decade ago. Instead, the contract included increased contributions to employee 401(k) retirement accounts.

Outside the Renton factory, discontented workers held signs reading, "Historic contract my ass" and "Have you seen the damn housing prices?" Protesters played songs like Twisted Sister's "We're Not Gonna Take It" and Taylor Swift's "Look What You Made Me Do," while honking car horns added to the atmosphere of dissent. In response, Boeing released a statement expressing its willingness to return to the negotiation table, acknowledging that the tentative agreement did not meet the expectations of the membership.

The strike comes as another blow for Boeing, which has faced numerous challenges throughout the year, including manufacturing issues, federal investigations, and a damaged reputation after the crashes of two 737 Max aircrafts in 2018 and 2019. NASA's recent decision to leave two astronauts in space rather than returning them on a problem-ridden Boeing Starliner spacecraft has further added to the company's troubles.

The duration of the strike is uncertain, but based on past strikes at Boeing, aerospace analysts predict it could last until mid-November, potentially costing the company up to $3.5 billion in cash flow. Despite unanimous recommendations from union negotiators to approve the proposed contract, many members expressed frustration over past concessions regarding pensions, healthcare, and pay.

Boeing's new CEO, Kelly Ortberg, who took the helm six weeks ago with the task of leading the company's recovery, warned that a strike would jeopardize Boeing's prospects and undermine trust with airline customers. However, workers remain steadfast in their demands, with some stating they haven't received a raise in 16 years.

Amidst this standoff, Boeing hopes to regain stability and avoid relocating production as it promises to build its future aircraft in the Puget Sound area, eventually replacing the 737 Max. While strikes have disrupted operations, the company's recovery and long-term future hang in the balance.