Boeing’s Troubles Keep Piling Up: Now Facing a Union Strike at Its Biggest Factory

Boeing ($BA) just can’t seem to catch a break. After dealing with the fallout from the 737 MAX incident in January, struggles in its commercial space operations, and delays on new jets like the 777X, things are getting even tougher. Now, a massive union strike could be the latest problem to hit the aerospace giant.

• On Thursday, 95% of the union representing 33K machinists at the aircraft manufacturing leader’s largest production site voted to strike, rejecting a deal that included a 25% pay raise over four years and a commitment to build its next jet in the region.
• The union is pushing for a 40% raise over three years, which Boeing didn’t offer. This vote marks the first time in 16 years the union has negotiated a contract, and tensions have been building.
• Boeing’s decision to eliminate pensions, cut bonuses, and keep wages stagnant despite Seattle’s rising living costs has added to the frustration.

Terrain, pull up, pull up: The global aerospace innovator’s stock is down 37% this year, making it one of the worst performers among major companies. And as if Boeing’s troubles weren’t enough already, Bloomberg reports that the strike could lead to a downgrade of its credit to junk status. Moody’s is keeping a close eye on “the strike’s duration and impact on cash flow.” Maybe even more embarrassing is the possibility of Boeing being removed from the Dow Jones Industrial Average, where it’s been a staple since 1987.