Yesterday, Wednesday, about 64 percent of Boeing factory workers on the West Coast of the United States rejected the company’s latest offer, which led to the cessation of production lines for almost all commercial aircraft produced by the company, including the 737 MAX model, which it considers the basis of its financial budget.
The offer included a general wage increase of 35 percent over the next four years but did not include a specific retirement plan, which is one of the main demands of the striking workers.
“It will have to,” said Nick Cunningham, an analyst at Agency Partners Boeing “Settle the matter and make a higher offer because they are not in a position to enter into a (conflict).”
Analysts said the workers’ decision could affect the refinancing efforts the company needs to stabilize its operations after the strike hampered its recovery from a series of previous crises.
Last week, Boeing submitted documents giving it an opportunity to raise up to $25 billion to avoid losing its investment rating, in addition to securing a loan worth ten billion dollars.
But although many analysts say the company would prefer to wait until the strike ends and start generating more revenue through delivery of its orders before heading to the financial markets, the conflict between workers and labor management is putting it under increasing pressure to settle the matter.
“We do not rule out a capital increase before the strike ends… depending on market conditions,” JPMorgan analyst Seth Sifman said after the workers’ decision.
