Boeing's Labor Dispute Escalates Amid Financial Strain

Boeing is grappling with a critical labor dispute as it withdraws its pay offer to 33,000 U.S. factory workers amid an ongoing strike. The negotiations with the union have reached a stalemate, with the union demanding a 40% pay increase over four years and the restoration of a defined-benefit pension.

Boeing had previously proposed a 30% raise along with a performance bonus, but this was deemed insufficient by the union's members. As the strike enters its fourth week, Boeing faces significant financial challenges, including the risk of losing its investment-grade credit rating.

The strike has disrupted production at key factories, exacerbating delivery delays of models like the 737 and 777. In response, Boeing has implemented temporary furloughs for salaried employees and halted hiring. The company is also exploring options to raise funds through stock and equity sales to mitigate its financial strain.

The situation echoes a similar strike in 2008, which lasted 57 days and cost Boeing an estimated $2 billion. As tensions persist, Boeing's ability to navigate this labor dispute will be crucial for its future stability and competitiveness.