Boeing Engineers Vote to Strike, Shares Plummet 7.5%
About 17,000 Boeing engineers and technical staff have voted to strike in late October, with 64% of engineers rejecting a proposed four-year contract. The workers are involved in certification and engineering tasks for the 737 MAX 7, MAX 10, and 777X.
The vote does not immediately halt production, but it poses a schedule risk as certification work could slow down, further postponing cash inflows from already delayed deliveries. Boeing maintains its initial proposal and has initiated contingency measures.
The decline in shares reflects concerns over execution, wiping out approximately $13.8 billion in market value. Analysts maintain a positive outlook on the company's extended rebound, with a consensus price target 28.3% higher than Friday's closing level of $214.20.