Sky-High Stakes: Boeing's Battle with Labor and Market Pressures

U.S. Acting Labor Secretary Julie Su intervenes in Boeing's labor dispute, as thousands of workers strike, demanding wage hikes and pension restorations. Boeing plans job cuts amidst strikes that destabilize its finances. The firm's 777X delivery delays compound its challenges, leaving industry analysts skeptical about Boeing's future forecasts.

U.S. Acting Labor Secretary Julie Su traveled to Seattle to personally step into the labor dispute between Boeing and approximately 33,000 striking workers. The strike, now entering its fifth week, poses a significant threat to Boeing's financial stability, prompting the company to announce plans for cutting 17,000 jobs and incurring $5 billion in charges.

It remains unclear whether Su plans to meet with Boeing CEO Kelly Ortberg. A source familiar with the situation revealed that Secretary Su's Seattle visit includes meetings with both involved parties to assess the strike and propel negotiations forward. This marks her initial face-to-face intervention in the conflict, after prior remote communications with both parties.

The International Association of Machinists and Aerospace Workers spokesman was unavailable, while Boeing, along with a White House representative, declined to comment. The ongoing strike, demanding a substantial wage hike and pension reinstatement, continues to strain Boeing as market competitors capitalize on labor shortages. A recent 1% decline in Boeing's stocks followed the after-hours disclosure of job cuts and production changes.

(With inputs from agencies.)