Workers in the Seattle area and Oregon rejected a tentative agreement proposed by Boeing and the International Association of Machinists and Aerospace Workers, with 94.6% voting against it. They voted 96% in favor of the strike, well above the two-thirds majority needed to halt work, media reported.
While the proposal reportedly offered a 25% increase in wages, improved healthcare and retirement benefits, the union had aimed for raises of approximately 40%.
Boeing has lost around $8 billion this year and has a mounting debt problem. Production is below expectations due to manufacturing issues and labor shortages. It attracted additional federal attention on its production lines after a tire blowout on a nearly new Boeing 737 Max 9 at the beginning of the year.