Boeing Workers Strike: Production Halted Amid Labor Dispute

Boeing’s U.S. West Coast factory workers initiated a strike after rejecting a contract proposal, halting production of its key jets. The strike, Boeing’s first since 2008, adds to the company’s woes amid regulatory scrutiny, stock declines, and severe financial strain due to heavy debts.

Boeing's U.S. West Coast factory workers walked off the job early on Friday, rejecting a contract deal and halting production of its best-selling jets as the company faces severe delays and heavy debt. This marks the first strike since 2008, occurring amid mounting scrutiny from U.S. regulators following a recent incident involving a 737 MAX jet.

The crises have hit Boeing's stock, falling 4% in U.S. pre-market trading on Friday and down 38% since early 2024. New CEO Kelly Ortberg, brought in to restore confidence, had proposed a 25% wage increase over four years, far less than the 40% workers demanded. The rejected deal included a $3,000 signing bonus and a promise to build Boeing's next commercial jet in the Seattle area.

Roughly 30,000 members of the International Association of Machinists and Aerospace Workers voted to strike after rejecting the contract, demanding respect and fair wages. The strike poses multiple challenges, including financial impacts and production delays. Analysts predict a long strike could severely impact both Boeing and airlines reliant on its jets.

(With inputs from agencies.)