Boeing is facing a major setback as its workers in Seattle and Portland have gone on strike. The reason? They strongly rejected a proposed pay deal, despite it offering a 25% salary increase over the next four years. Nearly 95% of the union members voted against the deal, leading more than 30,000 workers to stop working at midnight Pacific Time on Friday.

This strike is a tough break for Boeing, which is already struggling with significant financial losses. The company has also been dealing with a damaged reputation after a series of safety issues, including two tragic plane crashes.

Kelly Ortberg, the new CEO of Boeing, is now facing a big challenge. He was recently hired to turn the company’s fortunes around. The strike adds to his difficulties as he tries to fix Boeing’s problems. Almost 96% of the workers who voted supported the strike action until a new agreement is reached. Jon Holden, the president of the International Association of Machinists and Aerospace Workers (IAM) District 751, made it clear: “Our members spoke loud and clear tonight. We strike at midnight.”

The strike has halted the production of Boeing’s popular 737 planes. Brian West, Boeing’s chief financial officer, mentioned that the impact of the strike will depend on how long it lasts. He warned that the stoppage could “jeopardize” the company’s recovery efforts. West emphasized that Boeing wants to resolve the situation by repairing its relationship with the workers and reaching a new deal. “We want to get back to the table and we want to reach an agreement that is good for our people, their families, and our community,” he said.

This strike is a big blow to Boeing and a tough moment for Mr. Ortberg, who had asked workers to accept the deal before the vote. He warned that a strike could hurt the company’s recovery. The question now is how long the strike will continue. Boeing seems ready to negotiate, but there’s a clear breakdown in trust between the management and the workers. The union leaders had called the rejected deal the best they could negotiate and urged members to accept it.

The proposed deal included a 25% pay rise over four years and a promise from Boeing to build its next commercial plane in the Seattle area if the project started during the contract’s term. The union had originally asked for a 40% pay rise. West acknowledged that there had been a “disconnect” and that Mr. Ortberg was working hard to find a compromise.

If the strike goes on for a long time, it could cost Boeing and its suppliers billions. On Friday, Boeing’s stock prices dropped after Moody’s warned that the situation might lead to a downgrade of Boeing’s credit rating. A lower credit rating would make it more expensive for Boeing to borrow money. The current contract between Boeing and the unions was settled in 2008 after an eight-week strike that cost the company about $1.5 billion each month. In 2014, the contract was extended, but it expired at midnight on Thursday.

Greg Waldron, an aviation news editor, said, “It’s never a good time for a strike, but the current situation makes it even more problematic. A lot will depend on how long the strike lasts. Airline CEOs who have 737 Maxes on order will be watching this closely.”

Mr. Ortberg’s appointment as CEO came at a tough time for Boeing, which was already in a deep crisis over its safety record. His predecessor, Dave Calhoun, had announced his resignation in the spring. In July, Boeing agreed to plead guilty to a fraud charge and pay nearly $244 million in connection with the fatal crashes of two 737 Max planes more than five years ago. Boeing is also dealing with other lawsuits and investigations, including a recent incident where a door plug on a new plane blew out while in the air.

Adding to Boeing’s troubles, the company has slowed down its production lines and is not meeting a 737 Max production cap set by the US Federal Aviation Administration. West mentioned that Boeing had been increasing its production pace and hoped to meet the cap by the end of the year. “There was very good momentum. Unfortunately, there’s now a strike,” he said. “My expectation is we’ll pick right back up where we left off, but I don’t know when.”

The strike and its impact on Boeing’s operations are yet to be seen, but it’s clear that the company faces a significant challenge. How long the strike lasts will be crucial in determining the company’s ability to recover and move forward.