Boeing Halts Airplane Construction After Labor Talks Fail; 27,000 Workers To Strike

Seattle, WA (AHN) - An estimated 27,000 employees from the International Association of Machinists and Aerospace Workers (IAM) have voted to go on strike after talks with Boeing failed to produce a new labor agreement.

"Over the past two days, Boeing, the union and the federal mediator worked hard in pursuing good-faith explorations of options that could lead to an agreement. Unfortunately the differences were too great to close," President and CEO of Boeing Commercial Airplanes said in a statement.

"Despite meeting late into the night and throughout the day, continued contract talks with the Boeing company did not address our issues," the IAM added.

According to Boeing, the strike will effect plants in Washington State, Oregon and Kansas. The firm "will continue delivering airplanes that were completed prior to the strike, and will continue providing customers with spare parts" but will not "assemble airplanes during the strike."

"The union gamble in this case is significant and immediate," G2 Solutions aviation consultant Michel Merluzeau told Bloomberg. "Boeing's offer was reasonable, especially considering the current economy and the projected market slowdown."