Boeing Withdraws 30% Pay Rise Offer Amid Strike by 33,000 Workers, Faces Credit Downgrade

Oct 9, 2024, 03:56 AM

Boeing has withdrawn its contract offer to the International Association of Machinists and Aerospace Workers (IAM) after negotiations to end a nearly month-long strike collapsed for the third time. The strike involves around 33,000 workers on the US West Coast and has significantly impacted Boeing's production, with jet deliveries dropping from 40 in August to 33 in September. Boeing had offered a 30% pay rise and performance bonus guarantees, but the union found these improvements insufficient. S&P Global Ratings placed Boeing on CreditWatch negative, citing the financial risks associated with the strike, estimating costs of over $1 billion per month. Boeing's credit rating could be downgraded to junk if the strike continues, potentially increasing its annual interest costs by at least $100 million. Boeing is exploring options to raise billions of dollars through stock and equity-like securities to mitigate the financial impact. No further negotiations are currently planned.