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Boeing Labor Strike Intensifies: Union Rejects Contract Amid $1B Monthly Loss

Word on the StreetThursday, Oct 24, 2024 1:00 am ET

1min read

Boeing's largest union has rejected a new labor contract proposal, extending a strike that has persisted for six weeks and posing an increasing financial threat to the aerospace giant. The union's leadership reported that a majority of machinists, with 64% voting against the proposal, turned down the offer, which included a 35% wage increase over four years.

The ongoing disagreement has kept production facilities for the 737, 767, and 777 models shut down, not only slashing Boeing's revenue but also potentially straining the company's supply chain. On the same day as the vote, Boeing warned investors that the company had already exhausted over $10 billion in cash in the first three quarters of 2024, with further cash outflows expected through 2025.

Industry analysts estimate that the strike is costing Boeing approximately $1 billion per month. This financial hemorrhage underscores the urgency for the company to rectify labor disputes swiftly to safeguard its operational stability and financial health.

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