Boeing Company workers go on strike! The halt in production of 737 MAX leads to a nearly 4% drop in pre-market stock prices.

After receiving 96% of the vote support, workers at Boeing Company's (BA.US) West Coast factory in the United States held a strike on Friday, causing production of the aircraft manufacturer's best-selling plane - the Boeing Company 737 MAX - to be suspended. Currently, Boeing Company is struggling to address long-term production delays and increasing debt issues. At the time of writing, the stock fell nearly 4% in premarket trading, to $156.49. In January of this year, a nearly brand-new 737 MAX aircraft experienced a serious incident during flight where a door panel fell off. The company's new CEO, Kelly Ortberg, took office in August, and shortly after, workers began their first strike since 2008 to express their dissatisfaction with company policies or conditions. In the Seattle and Portland areas, about 30,000 members of the International Association of Machinists and Aerospace Workers (IAM) voted on their first full contract in 16 years, overwhelmingly rejecting the contract and supporting the strike. Jon Holden, chief negotiator for Boeing Company's largest union, said before the vote results were announced on Thursday evening, "This is about respect, this is about resolving past issues, this is about fighting for our future." Although Boeing Company reached a preliminary agreement with IAM leadership, the vote results clearly show that IAM members do not accept the agreement. Boeing Company said in a statement, "We remain committed to rebuilding our relationship with employees and the union, and we are ready to return to the negotiation table to reach a new agreement." The rejected agreement included an overall wage increase of 25%, a $3,000 signing bonus, and a commitment to manufacture Boeing Company's next generation commercial aircraft in the Seattle area, contingent on the project starting within four years of the contract. Many workers are angry about not meeting their initial demands for a 40% wage increase and losing annual bonuses. Holden said, "We will return to the negotiating table as soon as possible," but did not disclose how long he thought the strike would last or when negotiations would resume. Strike Crisis May Hit Company's Recovery Process Workers at Boeing Company's factory in Seattle, responsible for assembling Boeing Company MAX, 777, and 767 aircraft, have been protesting for a week straight. Boeing Company has fallen 36% year-to-date, reflecting market concerns about the company's safety, production issues, and a debt burden of up to $60 billion. The strike has brought a series of challenges to Boeing Company. After claiming to have provided all possible assistance, the company must now decide how to further respond at the negotiating table, and how to ensure the safety and production of high-value unfinished aircraft in the factory in the absence of union workers. Boeing Company CEO Ortberg warned in a letter to employees on Wednesday that the strike could jeopardize the company's recovery process, weaken trust with customers, and damage the company's ability to make decisions for the future. If the strike continues, it will not only affect Boeing Company's financial situation, but also have a ripple effect on airlines relying on Boeing Company aircraft and suppliers producing parts for them. The CEO of India's IndiGo, Campbell Wilson, said on Friday that the delivery of 737 MAX aircraft from Boeing Company to the airline seemed to be "slightly delayed" due to regulatory reviews following the Alaska Air Group, Inc. incident and industry-wide supply chain issues, although there is no official news at the moment. According to a report by TD Cowen, if the strike continues for 50 days, Boeing Company could lose cash flow of about $3 billion to $3.5 billion. Looking back to 2008, a strike by Boeing Company workers resulted in the factory being closed for 52 days, with daily revenue losses of about $100 million. Standard Pool Corporation's global rating notes that an extended strike could slow Boeing Company's recovery and potentially damage its credit rating. Currently, both Standard Pool Corporation and Moody's Corporation have Boeing Company's rating slightly above junk status. As for the White House, no response has been made to the matter yet.