08:52 AM EDT, 09/13/2024 (MT Newswires) -- Boeing ( BA ) shares were down early Friday after members of the International Association of Machinists and Aerospace Workers unanimously rejected a tentative labor deal between the plane maker and the union.

As part of the deal's ratification process, about 95% of Boeing ( BA ) workers that are part of the union's districts 751 and W24 voted on Thursday to reject the contract and 96% voted to strike. More than 30,000 employees began to walk out of the aircraft manufacturer's facilities in Seattle and Portland on Friday, according to several media reports.

"The message was clear that the tentative agreement we reached with IAM leadership was not acceptable to the members," Boeing ( BA ) said in a statement. "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."

Shares of the company declined 3% in premarket activity.

The IAM union, which recommended its members to approve the labor deal, said its negotiating team will now "begin planning the next steps on securing an agreement that our membership can approve."

The proposed four-year agreement, which was agreed on Sunday with the two IAM districts, included a 25% general wage increase over the length of the contract, as well as contributions by Boeing ( BA ) to its employees' retirement plans and a lower healthcare cost share, among other benefits. The company also offered to pay a $3,000 lump sum payment to employees within 30 days and commit to build its next new airplane in the Puget Sound region, if the deal was ratified by Thursday.

The workers' strikes are likely to impact Boeing's ( BA ) cash balance, future margin potential and cash generation, Truist Securities said in a Friday client note. "We are currently assuming the duration of the strike will be short, will primarily impact Boeing ( BA ), and should not have a material impact on the overall supply chain, according to the brokerage.

A lengthy strike could make it difficult for the company to finance and close its planned $8.3 billion acquisition of Spirit Aerosystems (SPR), Truist said.

Price: 157.90, Change: -4.87, Percent Change: -2.99