Boeing's Production Stalled by Major Union Strike

Boeing's first strike since 2008 has significantly disrupted its aircraft production. The strike began after 33,000 workers, represented by the International Association of Machinists and Aerospace Workers, overwhelmingly rejected a proposed 25% pay raise over four years.

The workers are demanding more substantial increases and the reinstatement of pension systems. The strike has halted operations in major assembly plants in Renton and Everett, impacting the production of models like the 737 MAX, 777, and 767. Additionally, other facilities, including a parts factory in Portland, have ceased operations, further straining Boeing's already fragile supply chain.

Boeing's new CEO, Kelly Ortberg, warned that the strike could jeopardize the company’s recovery, which has been marred by financial losses and safety concerns. Despite being $60 billion in debt, Boeing remains open to further negotiations with the union.

The strike reflects deep-seated frustrations over executive compensation and past concessions made by workers. Analysts estimate that a prolonged strike could cost Boeing billions, further complicating its efforts to regain stability and trust in the market.