The article discusses the ongoing strike by members of the International Association of Machinists against Boeing, which has lasted for one month and has cost the company nearly $5 billion, according to a new analysis. The strike has halted operations at Boeing’s production facility in Everett, Washington, leading to losses for workers, shareholders, suppliers, Seattle-area businesses, and Boeing customers. The strike is the first at the company in 16 years, and has had a significant impact on the company’s operations and finances.
Boeing’s workers and shareholders have incurred the bulk of the losses from the strike, amounting to $3.7 billion. Additionally, losses to Boeing’s suppliers total $900 million, non-Boeing Seattle workers have seen losses of $102 million, and Boeing customers worldwide have incurred losses of $285 million. The costs to Boeing and its shareholders are growing as the company depletes its cash reserves and may need to borrow or issue stock to continue operations through the strike and recovery period.
In response to the strike and financial challenges, Boeing announced that it will be laying off 10% of its workforce, approximately 17,000 employees, in the coming months. The company’s new CEO, Kelly Ortberg, acknowledged the difficulties facing Boeing and emphasized the challenges that lie ahead. Boeing has faced a series of setbacks in recent years, including fatal crashes, increased regulatory scrutiny, and the guilty plea for defrauding the FAA related to the 737 Max fleet, which resulted in significant fines for the company.
Negotiations between Boeing and the striking IAM workers reached an impasse last week after two days of federally mediated talks. Despite the union’s demands being deemed “non-negotiable” by Boeing’s commercial airplane division CEO, there is still hope for a deal according to IAM District 751 President John Holden. Holden expressed confidence in the strike fund’s ability to support members for an extended period of time, but also acknowledged the broader economic impacts of the strike, including its effect on GDP, the aerospace supply chain, and production going forward.
Overall, the strike against Boeing by IAM members has had significant financial repercussions, with losses exceeding $5 billion over the course of one month. The strike has halted operations at Boeing’s production facility and has impacted workers, shareholders, suppliers, businesses in the Seattle area, and Boeing customers worldwide. Negotiations between Boeing and the union have stalled, but both sides remain hopeful that a deal can be reached to end the strike and mitigate its economic impact. As Boeing faces layoffs and financial challenges, the future of the company remains uncertain as it navigates through this difficult period.
