Boeing Aircraft Assembly workers have downed their tools at the factories in the Seattle and Portland areas after union members voted to go on strike and reject a tentative contract that included a 25% pay raise over four years instead of a 40% raise.

Almost 95% of the union members who voted in the ballot rejected the deal, with 96% backing strike action.

The strike involves 33,000 Boeing machinists, who produce planes, including the 737 MAX, Boeing’s best-selling airliner, along with the 777 jet and the 767 cargo plane at factories in Renton and Everett, Washington.

The machinists make $75,608 per year on average, excluding overtime, and that would rise to $106,350 at the end of the four-year contract, according to Boeing.

However, the deal fell short of the union’s initial demand for pay raises of 40% over three years. The union also wanted to restore traditional pensions that were axed a decade ago but settled for an increase in Boeing contributions to employees’ 401(k) retirement accounts.

In an official statement, Boeing said it was ready to return to the negotiation table following the announcement of a strike.

“The message was clear that the tentative agreement we reached with IAM leadership was not acceptable to the members. We remain committed to resetting our relationship with our employees and the union,” the company statement said in part.

The strike represents another setback for the aviation giant, whose
reputation and finances have been affected by manufacturing problems and multiple federal investigations this year. It is also a major blow for Boeing’s new Chief Executive Kelly Ortberg, who was appointed in August 2024 with a mission to turn the business around.