Union members hold picket signs during a press conference following the count of the union contract vote at the main union hall of IAM District 751, Thursday, September 12, 2024, in Seattle, Washington, USA.
M. Scott Brower | Bloomberg | Getty Images
boeing company Chief Financial Officer Brian West said the strike, which began on Friday, hours after factory workers went on strike and overwhelmingly rejected a new labor contract, would hurt aircraft deliveries and “jeopardize” the company’s recovery.
West said the financial impact of the strike would depend on how long it lasted, but it would affect production of the company’s best-selling aircraft. Speaking at an industry conference on Friday, West declined to say whether the company would be able to reach the production rate of 38,737 Max planes per month by the end of the year.
Jefferies aerospace analyst Sheila Kahyaoglu previously estimated that a 30-day strike could cost Boeing $1.5 billion.
Boeing’s current focus will be on “taking action to conserve cash,” West said, adding that new CEO Kelly Ortberg would work to restore relations with unions.
Boeing and the International Association of Machinists and Aerospace Workers announced a tentative labor deal on Sunday that includes a 25% wage increase over four years and other improvements to health care and retirement benefits. But workers have been seeking a 40 per cent pay rise, arguing it would not be enough to cover the increased cost of living.
Workers in the Seattle area and Oregon voted 94.6% against the proposal and 96% in favor of a strike.
They got off work after midnight on Friday.
Boeing mechanics last went on strike in 2008, with the work stoppage lasting nearly two months.
Production disruptions are possible as manufacturers face a range of issues. The company has been working to increase production and restore its reputation following the security crisis.
In January, a door jam burst on a nearly new Boeing 737 Max 9, prompting the Federal Aviation Administration to ban Boeing from increasing production of its Max planes and step up inspections of production plants until regulators are satisfied with its safety and quality procedures. until.
An FAA spokesman told CNBC on Friday that the agency will keep inspectors at Boeing plants during the strike.
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