Boeing's Labor Crisis: Strike Deepens Financial Penalties Amid Stalled Negotiations

Boeing's negotiations with its manufacturing union have stalled, extending a costly strike into its fourth week. The company withdrew its pay offer after the union rejected it, leading to financial strains amid ongoing production issues. Boeing considers raising funds to stabilize its finances.

Boeing's pivotal talks with its primary manufacturing union have faltered, as the costly strike enters its fourth week without any planned negotiations. The company announced on Tuesday its withdrawal of a pay proposal for around 33,000 U.S. factory workers, citing a lack of serious consideration from the union after two days of discussions.

The persistent deadlock shows no sign of a breakthrough, according to a source familiar with the talks. Boeing Commercial Airplanes head Stephanie Pope communicated to employees that further negotiations seemed futile, describing the union's demands as 'non-negotiable.'

Boeing faces compounding financial and production strains, with 2024 cash reserves dwindling following safety oversights and U.S. regulatory production constraints. Despite efforts to broker a labor deal under new CEO Kelly Ortberg, Boeing now explores options to strengthen its balance sheet by potentially selling stock amidst a downgraded credit rating risk.

(With inputs from agencies.)