Boeing shares fell 2.7% in pre-market trading after factory workers on the U.S. West Coast rejected the company’s latest contract offer, extending a six-week-long strike. The strike has halted production of major models like the 737 MAX, raising concerns about Boeing’s ability to stabilize its finances amid ongoing challenges.
Workers rejected a contract offering a 35% wage increase over four years but lacking a defined benefit pension plan, one of their key demands. This rejection is a setback for new CEO Kelly Ortberg, who had aimed to rebuild relationships with factory workers.
Analysts warn that Boeing may need to offer more concessions to resolve the labor dispute, as the strike adds pressure to a company already struggling with cash flow issues. The company recently filed papers allowing it to raise up to $25 billion and secured a $10 billion credit facility.
Boeing’s challenges go beyond labor unrest, with the company dealing with previous safety and quality crises, as well as industry-wide shortages in parts and labor. The ongoing strike has cast a shadow over Boeing’s financial recovery and efforts to regain market share from Airbus.
