Boeing is currently embroiled in a significant strike with its machinist union, IAM, which has now entered its fourth week. The union is demanding a substantial 40% wage increase over four years and the restoration of a defined-benefit pension plan.
Boeing's previous offers of 25% and later 30% have been rejected, leading to a deadlock in negotiations. As the strike continues, Boeing is experiencing severe financial consequences, with estimated losses exceeding $1 billion each month.
This ongoing work stoppage has resulted in the shutdown of essential manufacturing facilities, particularly affecting the production of key aircraft models like the 737 and 777. Furthermore, Boeing faces the threat of a credit rating downgrade due to its considerable $60 billion debt load and rising operational costs.
The company's leadership acknowledges the impact of the strike on its competitiveness, as temporary furloughs and hiring freezes have been implemented. With both sides entrenched in their positions, a resolution appears distant, leaving Boeing's financial stability hanging in the balance.
