Boeing is facing a major crisis as factory workers continue to vote to continue a strike, leading to production delays and serious financial difficulties.
Workers from the International Association of Machinists (IAM) on October 23 voted to reject a contract offer and continue a strike that has lasted more than five weeks, dealing a blow to investors and Boeing management's hopes for a resolution to the bitter dispute.
A Boeing aircraft at Le Bourget airport (France) on June 18, 2023
According to Reuters, 64% of workers rejected Boeing's agreement to raise wages by 35% over four years. The union's rejection could force Boeing to offer better terms to resolve the crisis.
Union leaders said they were ready to resume talks with Boeing over the 2014 contract. "After 10 years of sacrifice, we still have much work to do, and we hope to do that by resuming negotiations quickly," IAM leaders said.
In September, Boeing and IAM announced a tentative agreement that included a 25 percent wage increase and a four-year commercial aircraft production program in the Seattle area. At the time, IAM District 751 union president Jon Holden called it “the best deal ever.” However, 95 percent of IAM workers later voted against the tentative agreement and went on strike.
The labor standoff comes during an already challenging year for Boeing, which has been the focus of multiple federal investigations into an Alaska Airlines plane's mid-air door failure in January. Boeing also faces a loss of nearly $8 billion in 2024 after the strike halted production of the 737 MAX, 777 and 767 aircraft, according to Reuters. Boeing reported a loss of more than $6 billion in the third quarter of 2024 alone.
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"This is a big crisis and it will take a while to turn around, but when it does, it has the potential to be great again," said Boeing CEO Kelly Ortberg, who said he is currently reviewing Boeing's business and long-term forecast.
Boeing Chief Financial Officer Brian West told analysts he expects the company to continue burning cash throughout 2025 and the final three months of 2024, sending Boeing shares down 1.7%. Mr. West said the company has plans to address Boeing's balance sheet in the near term, which could include offering stock and stock-linked securities.
Source: https://thanhnien.vn/tuong-lai-bat-dinh-cua-boeing-truoc-lan-song-dinh-cong-185241024111342898.htm
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