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8mo ago

Boeing Machinists Strike Over Rejected Contract, Halting Production

The strike by 33,000 workers follows a rejected wage increase offer, adding pressure to Boeing's financial struggles and production delays.

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Workers with picket signs outside the Boeing Co. manufacturing facility during a strike in Everett, Washington, US, on Friday, Sept. 13, 2024. Boeing Co. factory workers walked off the job for the first time in 16 years, halting manufacturing across the planemaker's Seattle hub after members of its largest union voted overwhelmingly to reject a contract offer and go on strike.
Signage seen on a picket line during the first day of a strike near the entrance of a production facility in Renton, Washington, U.S., September 13, 2024. REUTERS/Matt Mills McKnight/File Photo

Overview

  • Boeing's 33,000 blue-collar employees began their strike on Friday after rejecting a proposed contract that included a 25% wage increase over four years.
  • The strike is expected to exacerbate Boeing's ongoing financial and operational challenges, including production delays and mounting debts.
  • Federal mediators are set to convene new talks early this week as both Boeing and the union express willingness to return to the negotiating table.
  • Union members are prepared for a prolonged strike, citing insufficient wage increases and changes to bonus criteria as key issues.
  • Analysts predict that a strike extending beyond two weeks could significantly impact Boeing's credit rating and stock, with potential losses estimated at $110 million per day.