The ongoing machinist strike at Boeing is causing mounting costs and could lead to a downgrade in the company's credit rating if it drags on too long. The strike, which began on September 13, has already resulted in lost production and halted shipments from Boeing's suppliers. The company is facing a tight labor market, with many machinists struggling to make ends meet in the Seattle area, where the median home price has increased by 142% over the past decade.

Boeing has offered a 25% general wage increase over a four-year deal, but the union is seeking wage increases closer to 40% as well as annual bonuses and a restoration of pensions lost more than a decade ago. The two parties have been unable to come to an agreement, with the union saying that Boeing has not addressed its top concerns.

The strike is costing Boeing an estimated $50 million a day, and the company has halted production of most of its aircraft. Boeing's new CEO, Kelly Ortberg, has announced temporary furloughs of tens of thousands of staff, including managers and executives, on the heels of a hiring freeze and other cost-cutting measures.

The strike is just the latest in a series of labor battles in recent years, including actors, autoworkers, port workers, and airline employees, all of which have won raises after strikes or strike threats. The Biden administration has encouraged Boeing and the union to reach a deal, and Transportation Secretary Pete Buttigieg has expressed hope that a resolution can be reached that works for both parties.

Boeing's Strike: A Tale of Workers' Struggle

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