Boeing Workers Strike Halts Production, Shares Plummet Amid Contract Dispute

Boeing's factory workers went on strike after rejecting a proposed contract, causing a halt in production and a 2% drop in shares. This marks the first strike since 2008 and adds to Boeing's ongoing crises. The new CEO proposed a 25% pay rise, far lower than the 40% workers demanded.

In a significant labor action, Boeing's factory workers on the U.S. West Coast walked off the job on Friday after overwhelmingly rejecting the company's contract proposal. The strike, which halts production of the aerospace giant's strongest-selling aircraft, sent shares tumbling over 2%.

This marks Boeing's first strike since 2008, coming at a time when the company faces heightened scrutiny from U.S. regulators and customers. The strike follows an incident in January where a door panel blew off a 737 MAX jet midair, intensifying Boeing's operational challenges.

New CEO Kelly Ortberg, tasked with restoring faith in the company, had proposed a deal that included a 25% pay rise over four years. However, this was far short of the 40% demanded by the nearly 30,000-member strong International Association of Machinists and Aerospace Workers (IAM), leading to a decisive 94.6% rejection and a subsequent strike.

(With inputs from agencies.)