Cash-strapped Boeing is currently facing the financial strain of an ongoing machinist strike as workers demand higher pay. The longer the strike lasts, the greater the cost to Boeing, potentially leading to a credit downgrade and increased borrowing costs for the already debt-ridden company. Boeing has already burned through billions this year due to manufacturing crises and decreased deliveries impacting cash flow.
Local Boeing machinists in Renton, Washington are struggling to make ends meet during the strike, with some considering side jobs in landscaping or furniture moving. Living costs in the Seattle area, where most of Boeing’s aircraft are produced, have skyrocketed, leaving many workers unable to afford homes. The median home price in Washington has increased significantly over the past decade, making homeownership out of reach for many.
The strike has already cost Boeing $50 million a day and has halted production of most aircraft, impacting the company’s vast network of suppliers. The workforce is seeking wage increases closer to 40%, along with annual bonuses and the restoration of lost pensions. Negotiations between Boeing and the union have been ongoing, with both sides expressing disappointment at the lack of progress.
Boeing CEO Kelly Ortberg announced temporary furloughs of tens of thousands of staff in response to the strike, adding to the company’s financial challenges. The Biden administration has encouraged both parties to reach a resolution that benefits workers and the company. Boeing is facing a tight labor market, with skilled technical labor in high demand and difficult to attract. The outcome of the strike will have significant implications for both Boeing and its workforce.
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