Boeing workers strike, prompting company to cut spending

Boeing is facing significant challenges due to a strike initiated by approximately 33,000 workers represented by the International Association of Machinists and Aerospace Workers. The strike began early Friday after workers rejected a proposed pay increase of 25% over four years, which they deemed insufficient compared to their original demand for a 40% hike. The union is currently surveying its members to determine their priorities for a new contract, while negotiations with federal mediators are scheduled for Tuesday. In response to the strike, Boeing has announced a series of cost-cutting measures aimed at preserving cash flow during this difficult period. These measures include a hiring freeze across all levels, a pause on pay increases for promoted managers and executives, and a halt to non-essential travel. Chief Financial Officer Brian West indicated that the company is also contemplating temporary furloughs for many employees in the near future. The financial strain on Boeing is exacerbated by its substantial debt, totaling $60 billion, which has led company officials to urge workers to accept the latest contract offer. Despite the company's claims that the offer was the best ever made, many workers feel it falls short of their needs, particularly in light of the absence of annual bonuses that have become crucial for their financial stability. As the strike continues, workers are actively picketing at various locations in Washington state, Oregon, and California, expressing their frustrations over perceived inequities in compensation. The situation remains tense as both sides prepare for further negotiations, with the outcome likely to have significant implications for Boeing's recovery and future operations.