Boeing's largest workers' union said its members rejected the plane maker's contract offer and voted to strike, but the union agreed to postpone a walkout for 48 hours to allow more time for negotiations.
The International Association of Machinists leadership announced the extension, which means Boeing employees will stay on the job until tomorrow, after saying that 87 per cent of its members voted to start a strike at midnight last night.
If a deal for a new three-year contract is not struck by t, nearly 27,000 Boeing workers will start a strike that would cost the company about $100 million in revenue per day as customers' planes sit idle on production lines.
Even though its workers voted overwhelmingly to strike, Boeing stopped short of promising anything specific or committing to improve on its last offer.
"We've got to keep talking to see if the gap can be narrowed," said Doug Kight, Boeing vice president and lead negotiator. "Our job at this time is to listen to the union."
A walkout would mark the fourth strike in 20 years for The International Association of Machinists and Aerospace Workers (IAM) - who are mostly based in Boeing's commercial plane plants in the Seattle area.
"This is a fairly common tactic to avoid going to a strike," said Victor Schachter, an expert on labor disputes who heads the employment group at law firm Fenwick & West.
The strength of the vote in favor of a strike will keep Boeing "sober," but the contract extension allows time to find middle ground, he said.
A strike would put a dent in the US economy, swelling jobless claims and increasing inventories at major Boeing suppliers such as Spirit Aerosystems Holdings, Rockwell Collins Inc and Goodrich Corp.
If airlines are put off buying new planes, it would also cut durable goods orders. A strike would also push back progress on the new 787 Dreamliner - key to Boeing's financial future - which is already about 15 months behind schedule.
The union leadership surprised rank-and-file members, who were preparing picket signs for a strike as the vote was being counted, with news of the postponement, drawing angry shouts from the crowd gathered at a Seattle union hall.
Boeing and the union agreed to the 48-hour strike delay at the request of US federal mediators.