Boeing faces strike threat as workers vote on new contract

The US planemaker's West Coast workers went on strike at midnight on Friday after overwhelmingly rejecting a contract deal, halting production of Boeing's workhorse 737 MAX.

Union leaders called for the strike to start just after midnight on Friday (0700 GMT), hours after hourly workers in the Seattle region in the Pacific Northwest spurned the tentative contract with a vote of 94.6 percent and to strike with 96 percent.

The tentative agreement that the International Association of Machinists and Aerospace Workers and the company unveiled on Sunday included 25% wage increases and other improvements to health-care and retirement benefits.

It is Boeing's first strike since 2008, and Boeing Chief Financial Officer Brian West warned a prolonged walkout could hurt output and "jeopardize our recovery".