Boeing Workers Stage Their First Strike Since 2008
Boeing factory workers went on strike in Renton, Washington, halting production of the 737 Max and causing a 2.1% drop in shares. Approximately 30,000 workers rejected a proposed contract, demanding better pay and conditions. The strike, the first since 2008, poses significant financial risks to Boeing, which is already dealing with a $60 billion debt.
On Friday, around 30,000 Boeing factory workers in Renton, Washington, walked off the job after rejecting a proposed contract, marking the company's first strike since 2008.
The strike halted production of Boeing's 737 Max, causing a 2.1% drop in the company's shares.
The workers, part of the International Association of Machinists and Aerospace Workers (IAM), overwhelmingly voted against the contract, which included a 25% pay rise over four years, far below the 40% they demanded.
The strike poses significant financial risks to Boeing, already struggling with a $60 billion debt.
The new CEO Kelly Ortberg, recently brought in to restore trust, faces the challenge of renegotiating with the union.
Boeing and the IAM have indicated willingness to return to negotiations, but no timeline has been set.
The Biden administration is monitoring the situation and urging both parties to negotiate in good faith.
The strike halted production of Boeing's 737 Max, causing a 2.1% drop in the company's shares.
The workers, part of the International Association of Machinists and Aerospace Workers (IAM), overwhelmingly voted against the contract, which included a 25% pay rise over four years, far below the 40% they demanded.
The strike poses significant financial risks to Boeing, already struggling with a $60 billion debt.
The new CEO Kelly Ortberg, recently brought in to restore trust, faces the challenge of renegotiating with the union.
Boeing and the IAM have indicated willingness to return to negotiations, but no timeline has been set.
The Biden administration is monitoring the situation and urging both parties to negotiate in good faith.
