(Photo : www.boeing.com)

• Boeing and the union representing its striking workers have resumed talks for the first time since a contract offer was voted down.
• The ongoing strike, now in its seventh week, has significantly impacted Boeing's operations and finances, prompting a stock offering to raise up to $24.3 billion.
• The strike's effects extend to Boeing's global network of suppliers, with some states and suppliers urging for its end.
• Despite financial and quality crises, Wall Street remains optimistic about Boeing's future, citing expected production ramp-up and a strong aircraft backlog.

The International Association of Machinists and Aerospace Workers Local 751, which represents approximately 33,000 striking U.S. West Coast factory workers, has announced a significant development. For the first time since members voted down an improved contract offer from Boeing last week, the union has met with the company. The meeting, facilitated by Acting U.S. Labor Secretary Julie Su, was described as productive by the union's bargaining committee. The committee pledged to continue to engage with the company to secure the best possible outcome for our members.

The strike, now in its seventh week, has had a significant impact on Boeing's operations and financial health. The company recently launched a stock offering that could raise up to $24.3 billion to bolster finances strained by the halt to production of its best-selling 737 MAX and its 767 and 777 widebody programs due to the strike.

Impact on Suppliers and States

The strike's impact extends beyond Boeing, affecting the company's vast global network of suppliers. The Republican governors of Utah, Missouri, and Montana have urged Boeing and the union to end the strike, citing the far-reaching impact on their states and the planemaker's suppliers. Boeing has stopped buying from most suppliers, most of whom are now making the very difficult decision to furlough or lay off their own employees, the governors stated in a letter to Boeing and the union.

The union has been seeking a 40% pay rise over four years and the return of a defined-benefit pension. Last month, about 95% of workers rejected a 25% pay hike. Earlier this month, Su had helped the parties restart discussions, ultimately leading to last week's vote on an offer of a 35% pay rise over four years that was rejected by 64% of union members.

Boeing's Financial Woes and Future Prospects

Boeing's financial woes have been compounded by a quality and safety crisis that began in January after a mid-air panel blow-out on a new Alaska Airlines 737 MAX 9. The company announced plans to cut 17,000 jobs globally - or 10% of its workforce - a one-year delay to a key new jet, and other cuts.

Boeing CEO Kelly Ortberg has vowed to turn around the company and laid out a four-point plan. Despite the company's challenges, Wall Street remains optimistic about Ortberg's ability to return the planemaker to a stronger position. Despite all the drama associated with Boeing, we continue to believe that the company deserves a premium earnings multiple because of the expected ramp-up in production and its strong aircraft backlog, analysts from William Blair said in a Wednesday report.