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The Boeing machinists' strike is adding to the challenges faced by the company, just over a month into CEO Kelly Ortberg's leadership. Shortly after about 33,000 workers went on strike, credit rating agencies issued warnings of potential downgrades to junk status if the strike continues for more than a week or two.
The members of the International Association of Machinists and Aerospace Workers are not only in conflict with Boeing management but also with their own union leadership, as 96% voted to reject a new contract. Boeing’s net debt exceeds $45 billion, and the company has been "bleeding cash," according to Bloomberg.
A Jefferies analyst estimated that a 30-day strike could cost Boeing up to $1.5 billion. Before the vote, Ortberg urged workers not to "sacrifice the opportunity to secure our future together, because of the frustrations of the past."
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