Boeing Strike Disrupts Production and Supply Chain

A significant strike by 33,000 Boeing machinists began on September 13 after union members overwhelmingly rejected a proposed contract with pay raises. This work stoppage has halted production of Boeing's 737 Max, 777, and 767 aircraft, leading the company to freeze hiring, reduce travel, and consider temporary layoffs to conserve cash amidst looming financial difficulties. Boeing's CFO, Brian West, warned that the strike jeopardizes the company's recovery and its financial health, as it could lead to credit downgrades and further losses. The planned deliveries of 39 Max aircraft to U.S. airlines in the coming months may also be affected, although some deliveries could still occur from existing inventory. Negotiations between Boeing and the union are set to resume, but the outcome remains uncertain, with workers seeking higher raises than proposed. Analysts suggest the situation poses a test of financial endurance for both the company and its employees.