Boeing Strike Stalemate: Union Demands & Financial Strains Intensify

Talks between Boeing and its union have collapsed with no new negotiations in sight as a costly strike continues into its fourth week. The impasse highlights Boeing's ongoing financial and production challenges, exacerbated by safety lapses and the pressing need to solidify labor deals.

Boeing and its primary manufacturing union have reached a deadlock in negotiations, escalating the financial impact of a strike now in its fourth week. Despite two days of discussions, Boeing retracted its pay proposal to 33,000 U.S. factory workers, accusing the union of not taking their offer seriously.

The ongoing impasse, coupled with an estimated $1 billion monthly cost, adds to Boeing's financial woes. According to S&P analysts, Boeing is currently struggling with cash flow due to previous safety concerns, including a mid-air panel failure that led U.S. regulators to limit production, further complicating its recovery.

Facing pressures both financial and reputational, Boeing's new CEO, Kelly Ortberg, seeks to resolve labor issues and stabilize the company. However, efforts to raise capital and restore production targets are hindered, with the company's stock down significantly and future production goals delayed, according to sources.

(With inputs from agencies.)