Boeing is facing financial strain due to an ongoing machinist strike in the Pacific Northwest, with workers demanding higher pay. The company, already $60 billion in debt, could face a downgrade if the strike persists. Boeing has lost $8 billion this year following manufacturing issues with its 737 Max planes. The strike, which costs Boeing $50 million a day, has halted production of aircraft and affected the company’s suppliers.
Workers, struggling with the high cost of living in Seattle, are taking side jobs to make ends meet during the strike. The union is seeking wage increases closer to 40%, annual bonuses, and a restoration of lost pensions. Negotiations have been unsuccessful, with both parties expressing disappointment over lack of progress. new CEO Kelly Ortberg is focused on reaching an agreement that recognizes the employees’ hard work and ends the strike.
With a tight labor market in aerospace and defense, Boeing’s struggles to hire and train workers create additional challenges. The strike, involving over 30,000 machinists, is the latest in a series of labor battles in recent years. The Biden administration is encouraging a resolution that benefits both workers and the company. As the strike continues, both Boeing and the union are feeling the financial and operational impact, with no clear resolution in sight.
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