Boeing's (BA.US) financial woes could be exacerbated by a prolonged strike by union workers

Boeing (BA.US) union leader Jon Holden said in an interview Saturday that the strike "could be for some time" as workers believe they can get bigger wage increases and better pensions. International Association of Machinists and Aerospace Workers members began striking Friday after voting overwhelmingly to reject a new contract. IAM produces Boeing's most popular 737 MAX and other jetliners in Seattle and Portland. Negotiators for Boeing and the union will return to the table this week under the supervision of a federal mediator after more than 94% of workers voted down Holden's initial contract proposal. Holden said his members prioritized bigger wage increases and restoring a defined-benefit pension plan, which IAM lost in its last round of negotiations with Boeing a decade ago. "We have never had the power and the leverage we have right now in history," Holden said in an interview. "Our members want us to use it. I know our members are confident. They're standing shoulder to shoulder, ready to go. So the strike could be for some time." The initial offer included a 25% pay raise over four years and a commitment to build Boeing's next commercial jetliner in the Seattle area if aircraft projects start during the contract's four-year term. Union members expressed frustration over years of stagnant wages and rising living costs, saying Boeing's proposal to eliminate performance bonuses would cut total wage growth in half. Boeing shares fell 3.7% on Friday. The stock has dropped nearly 40% this year, wiping out about $58 billion in market value. A long strike could further damage Boeing's financial condition, which is already struggling with a $60 billion debt load. A prolonged production halt would also put pressure on airlines that fly Boeing planes and suppliers that make parts for them.