Boeing Faces Worker Strike Amidst Growing Challenges

Boeing's factory workers in the U.S. West Coast went on strike after rejecting a contract, bringing production of the 737 MAX and other jets to a halt. The strike poses multiple challenges for Boeing, including managing production delays and a strained relationship with employees and unions.

Boeing's West Coast factory workers initiated a strike early Friday after 96% voted in favor, suspending production of the 737 MAX amid ongoing delays and debts. This strike, Boeing's first since 2008, follows CEO Kelly Ortberg's recent appointment and a mid-air incident involving a 737 MAX door panel.

Approximately 30,000 workers from the International Association of Machinists and Aerospace Workers (IAM) are striking after rejecting a 25% wage increase and other contract terms. Negotiations were led by union representative Jon Holden, who emphasized the need for respect and a better future for workers.

Boeing aims to renegotiate terms quickly, as the strikes have posed significant operational challenges and financial risks, potentially impacting the company's recovery and relations with airlines and suppliers. A prolonged strike could severely affect Boeing's cash flow and market ratings.

(With inputs from agencies.)