Zhixin Finance APP learned that Acting Secretary of the United States Department of Labor, Julie Su, is in Seattle assisting Boeing (BA.US) and the International Association of Machinists and Aerospace Workers (IAM) in resolving the ongoing five-week strike which has affected 33,000 workers. IAM stated that both parties are actively engaging in indirect negotiations facilitated by the United States Department of Labor. Su has met with the union and Boeing's CEO, Kelly Ortberg, and has communicated with both sides multiple times. This dispute has attracted wide attention in Washington, especially on the eve of the US presidential election. Democratic lawmakers have also expressed support for the striking workers.

IAM District 751 emphasized its commitment to seeking a fair resolution and fully engaging in the negotiations. Boeing has not commented on this yet. With the strike ongoing, the pressure on Boeing, its suppliers, and workers continues to increase, especially since the formal negotiations broke down over a week ago. The strike has led Boeing to shut down the 767, 777 aircraft, and 737 Max assembly lines, affecting operations on the West Coast.

This is Boeing's first major labor dispute in 16 years, with workers demanding wage increases and improved retirement benefits. They are dissatisfied with slow wage growth over the past decade while executives have received substantial rewards. Boeing is advancing a plan to reduce its workforce by 10% as the first step in a broader business restructuring under Ortberg's leadership. The supply chain is also affected, as Spirit AeroSystems Holdings Inc. announced a temporary layoff of 700 workers.

In response, Boeing has taken steps to raise up to $25 billion over the next three years to support its operations and maintain its investment-grade credit rating. Boeing's stock price has fallen by about 40% this year, making it the second-worst performer in the Dow Jones Industrial Average. Additionally, the company has reached a $10 billion supplemental credit agreement with multiple US banks and may raise funds through new stock issuances or debt to resist the strike and overcome operational challenges.

Regulatory filings show that Boeing may strengthen its financial position over the next three years through fundraising and new borrowing agreements with lenders. Since early 2019, Boeing has lost over $25 billion, with the strike entering its second month, the company's finances face new pressures, having consumed over $1 billion in cash, leaving the company with a total of $10.3 billion in cash and securities as of September.