Amid strike, Boeing, union negotiators to resume talks next week

Boeing and union negotiators will return to the bargaining table next week following a strike by over 30,000 workers that began on Friday. The workers responsible for building Boeing’s bestselling 737 MAX and other jets rejected a proposed four-year contract offering a 25% wage increase.

The union vote saw 94.6% of members rejecting the offer, with 96% supporting the strike. The walk-off impacts 10,000 Boeing suppliers across the US, including West Coast factories. Some of the facilities make the 737s.

Why the strike?
Workers last saw contractual hikes in 2008, the year they last walked off their jobs. They demand a 40% wage increase over four years, job security, and improved work-life balance.

Boeing employs 150,000 workers in the US and contributes $79 billion annually to the US economy—supporting 1.6 million jobs.

Financial impact of the strike
The walkout comes as the company is trying to increase production and improve its image following the January Alaska Airlines in-flight panel blowout incident. 

The strike has caused a 3.7% drop in Boeing’s stock, contributing to a nearly 40% decline this year and erasing about $58 billion in market value. A prolonged strike could further damage the company’s finances, already strained by $60 billion in debt.

The work stoppage is another problem the aviation giant faces. Boeing, which hasn’t posted an annual profit since 2018 and has accumulated over $33 billion in losses, is facing mounting financial pressure.

Production and cash flow concerns
The walkout also puts pressure on Boeing’s ability to meet its production target for the 737 MAX, which has over 4,700 pending orders. Analysts estimate that a 50-day strike could cost the company $3–$3.5 billion in cash flow, adding urgency to resolve the conflict and stabilize production.