Boeing employees resoundingly reject proposed contract, plan to go on strike.

• The halt of work will cease the production of many aircraft, including the popular 737 Max.
• Another costly blow to the company's efforts to boost output and enhance its reputation is the strike.

In the Seattle and Oregon areas, workers rejected a proposed agreement between Boeing and the International Association of Machinists and Aerospace Workers with a vote of 94.6% against it. However, they voted 96% in favor of striking, which exceeded the two-thirds vote needed for a work stoppage.

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He said Boeing needs to bargain in good faith.

Boeing didn't immediately comment.

The vote against CEO Kelly Ortberg, who has been in the top job for five weeks, was a blow to him. A day before the vote, he had urged workers to accept the contract and not to strike, stating that it would endanger the company's recovery.

The length of the strike will determine its ultimate financial impact.

If a strike at Boeing were to occur, Sheila Kahyaoglu, an aerospace analyst at Jefferies, predicts that it could result in a $1.5 billion hit to the company's cash flow within 30 days. This could potentially destabilize suppliers and supply chains. On the other hand, if the tentative agreement were to be passed, she forecasts that it would have an annual impact of $900 million.

This year, Boeing has spent approximately $8 billion and has accumulated increasing debt. Despite efforts to rectify manufacturing issues and tackle industry-wide challenges such as supply and workforce shortages, production has not met expectations.

The crash of a nearly new Boeing 737 Max 9 at the beginning of the year has led to increased federal oversight of Boeing's manufacturing processes.