US planemaker says strike of about 33,000 workers, which began last week, ‘jeopardizes recovery in a significant way'
Boeing Chief Financial Officer Brian West said the "strike jeopardizes our recovery in a significant way and we must take necessary actions to preserve cash and safeguard our shared future."
Boeing BA -1.24%decrease; red down pointing triangle said it would freeze hiring and delay pay increases for its salaried workforce as the jet maker grapples with financial fallout from a strike launched Friday by its largest union.
While Moody's Ratings placed the credit on review for a possible downgrade Friday on fears the strike will put more pressure on free cash flow, and Fitch Ratings said it's badly timed, S&P said its ratings are not immediately affected by the strike.
Boeing is pausing hiring and taking sweeping steps to conserve cash after about 33,000 workers went on strike on Friday including considering temporary furloughs for many employees.
More than 30,000 Boeing factory workers began a strike on Friday after overwhelmingly voting down a new contract. Boeing's CFO said Friday that the company is focused on conserving cash.
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Boeing bosses are staring down the barrel.
A strike by more than 30,000 Boeing workers who build planes in factories on the U.S. west coast stretched into its fourth day on Monday, with company and union negotiators due to resume talks over a labor contract on Tuesday.
Talks between Boeing and striking US factory workers will resume Tuesday under a federal mediator, the union said, after workers voted overwhelmingly to reject a proposal from the embattled aviation giant.
The walkout has fueled concerns about the jet maker's ability to repay its debts.