Boeing Faces Financial Strain Amid Ongoing Worker Strike

Boeing is freezing hiring and considering temporary furloughs due to a strike by over 30,000 workers. The strike, which began after contract negotiations failed, threatens Boeing's financial recovery. Union members demand better wages and pensions. Talks between Boeing and the union are set to resume amidst financial pressures.

Boeing announced it is halting hiring and contemplating temporary furloughs in response to a strike involving over 30,000 workers on the U.S. west coast. The strike, now in its fourth day, is significantly affecting the company's financial stability.

In a letter to employees, Boeing CFO Brian West expressed concern over the actions, stating, 'This strike jeopardizes our recovery in a significant way and we must take necessary actions to preserve cash and safeguard our shared future.' Negotiations are set to resume on Tuesday after union members rejected a contract offer that included a 25% pay increase but removed an annual performance bonus.

Union leaders are pushing for higher wages and the reinstatement of a defined-benefit pension. Previous strikes serve as a reference for workers' financial plans, with several preparing for an extended period without salaries. The strike comes amidst broader issues, including a recent safety crisis involving a Boeing 737 MAX and warnings of a potential credit rating downgrade.

(With inputs from agencies.)