Boeing Stock Drops as Machinists Reject Latest Deal, Continuing Strike

Boeing (BA) shares are falling in premarket trading after its machinists union rejected a new contract offer, continuing a crippling strike at the plane maker that started six weeks ago.

The 33,000 members of the International Association of Machinists (IAM), who went on strike on Sept. 13, voted 64% against a proposed deal that would have given them a 35% wage increase over four years.

The workers had wanted a 40% pay hike and a reinstatement of Boeing’s pension plan. 

“Ten years of holding workers back unfortunately cannot be undone quickly or easily,” Jon Holden, President of IAM District 751, and Brandon Bryant, President of IAM District W24, said following the vote. “But we will continue to negotiate in good faith until we have made gains that workers feel adequately make up for what the company took from them in the past.”

The strike has posed a major challenge for new Boeing Chief Executive Officer (CEO) Kelly Ortberg, who stepped into the role in August.

Boeing Executives Say Cash Burn Will Continue into 2025

The company posted an enormous third-quarter loss Wednesday and said that the ongoing cash burn will continue into 2025, according to a transcript provided by AlphaSense. 

Boeing is preparing to lay off about 10% of its workforce and plans to raise up to $25 billion over the next three years through the issuance of new debt and equity. 

Boeing stock has lost 40% of its value this year through Wednesday’s close, and was down a further 2% in premarket trading.