Boeing: Labor Disputes, Financial Strain to Weigh on Stock Price

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Boeing: Labor Disputes, Financial Strain to Weigh on Stock Price
Boeing Co
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) faces mounting pressure as its largest union rejected the company’s “best and final” offer, prolonging a strike that has already lasted nearly two weeks.

The proposal, which came after unsuccessful federal mediation, included a 30% general pay increase over four years, reinstatement of a performance bonus, improved retirement benefits, and a doubled ratification bonus of $6,000 if accepted by Friday. The labor dispute is impacting production of Boeing’s best-selling 737 MAX and other jets, adding to a tumultuous year that began with a January incident involving a 737 MAX door panel. Industry analysts estimate the strike could cost Boeing several billion dollars and potentially lead to a credit rating downgrade.As of 11:20 AM EDT on Tuesday, Boeing’s stock was trading at $154.81, down 0.95% for the day. The company’s market capitalization stood at $95.

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