Boeing Struggles Amid Union Standoff: A Billion-Dollar Stalemate

The Boeing union strike continues with 33,000 workers demanding a 40% pay rise over four years. Boeing's latest offer was refused, citing insufficient gains. The strike's cost pressures Boeing, already facing financial strain from past setbacks, risking its investment-grade rating.

Boeing is facing immense financial pressure as its union strike continues, leaving 33,000 workers off the job. The workers, represented by the International Association of Machinists and Aerospace Workers, have rejected Boeing's latest compensation offer, which proposed a 30% wage increase and a performance bonus. The union demands a 40% raise over four years.

The ongoing halt in production of popular models such as the 737 MAX and 767 jets is costing the aerospace giant more than $1 billion monthly, as estimated by ratings agency S&P. The strike further threatens Boeing with the potential downgrade of its investment-grade credit rating, compounding existing challenges from previous production halts.

Boeing claims the union refuses to consider its 'best and final' offer seriously. Union leader Jon Holden maintains that the negotiation breakdown is far from an impasse, citing areas requiring significant improvement, such as wage demands and retirement benefits. Despite the deadlock, there's cautious optimism for further dialogue to resolve the standoff.

(With inputs from agencies.)