Boeing workers walked off the job early Friday in protest against the aerospace giant, marking the first strike since 2008. The action followed disagreements over a proposed four-year contract, with key issues including wages, job security and working conditions.

How many Boeing workers are strking?

According to Reuters, approximately 30,000 members of the International Association of Machinists and Aerospace Workers, who produce Boeing’s bestselling 737 MAX and other jets in the Seattle and Portland areas, voted on their first full contract in 16 years. In a two-part ballot after the proposal was presented to the union on Sunday, 94.6% rejected it and 96% voted to strike.

The company has faced various mounting crises, with the latest impacting Boeing’s financial performance and leadership. Shares fell 2.1% in early morning trading, per Reuters. So far this year, the stock has lost nearly 38%, translating to a $58 billion decline in market value.

IAM District 751 President Jon Holden urged workers to strike during a news conference following the release of the voting results. According to CNBC, he described the action as an “unfair labor practice strike,” citing allegations of “discriminatory conduct, coercive questioning, unlawful surveillance and … unlawful promise of benefits” experienced by factory workers.

“The message was clear that the tentative agreement we reached with IAM leadership was not acceptable to the members,” the company said in a statement obtained by the outlet, per CNBC. “We remain committed to resetting our relationship with our employees and the union, and we are ready to get back to the table to reach a new agreement.”

What was included in the contract?

Stephanie Pope, CEO of Boeing’s commercial airplane unit, told workers earlier this week that the deal was the best contract they have ever presented to employees, according to CNBC. The contract included a 25% raise with better health care and retirement benefits. However, workers said the increase was far lower than the around 40% they pushed in negotiations, stating it didn’t cover the rising cost of living.

Boeing’s new CEO, Robert “Kelly” Ortberg, had been in the role for only five weeks when he urged workers to accept the deal and avoid striking, emphasizing the potential impact on the company’s recovery. Workers had previously protested Boeing in 2008, with demonstrations lasting almost two months, but there are concerns among top experts about the potential long-term financial repercussions of the current strike.

What will be the impacts of the Boeing strike?

Jefferies aerospace analyst Sheila Kahyaoglu estimated that a 30-day strike could cost Boeing $1.5 billion and disrupt suppliers and supply chains, while the tentative agreement would have had an annual impact of $900 million if approved.

Boeing has lost around $8 billion this year and is facing production issues and debt, exacerbated by supply and labor shortages. Delivery delays have frustrated airlines, prompting Southwest Airlines to cut its delivery expectations for the year.

“Our aggressive oversight of Boeing continues,” the Federal Aviation Administration said in a statement on Friday, per CNBC.

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