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Aircraft manufacturer, Boeing, said that it has to cut back orders of its 737, 767, and 777 aircraft due to a machinists’ strike that began on Friday. As a result of these losses, it announced that executives would not be allowed to fly Business or First Class and that it would look to pause its advertising and marketing, stop spending on outside consultants, furlough nonessential contractors, withdraw from future airshows, and pause donations to charities.
MarketWatch reported that a memo was leaked this morning from Boeing’s Chief Financial Officer, Brian West. In it, he says that the labor strike involving the jet maker’s 33,000-member machinists union would “jeopardize” Boeing’s recovery in a “significant way.” The memo continued to say: “In parallel to the steps above, we are planning to make significant reductions in supplier expenditures and will stop issuing the majority of supplier purchase orders on the 737, 767, and 777 programs.”
West first commented at a Morgan Stanley conference on Friday. He then said:
The strike will impact production and deliveries and our operations and will jeopardize our recovery. So our immediate focus is to the laser-like focus on actions to conserve cash, and we will.”
Day 2 – Strike Update
September 14, 2024Actions speak louder than words. Your vote of 96% to strike got everyone's attention. But we walk the walk and talk the talk in the Labor Movement. We stand on business, and now it's time to show them we aren't going anywhere.
The picket… pic.twitter.com/Bk4Hxkakem
— IAM Union District 751 (@IAM751) September 15, 2024
The IAM 751 union represents the machinists who build Boeing’s aircraft in the Puget Sound area. A vote was held on Thursday night. 94.6% rejected the tentative agreement and 96% voted to strike. Boeing offered its “largest-ever” wage increase of 25%, along with enhanced retirement benefits, improved healthcare, and a better work-life balance. This was not enough as members were seeking as much as 40% and a strike was called. The Federal Mediation and Conciliation Service is working with Boeing and IAM to resolve the strike, negotiate new terms, and get workers back on the factory floor and producing aircraft.
Anthony’s Take: Boeing has some work to do here in order to get this strike called off and workers back in the factories. The aircraft manufacturer is making some tough choices to save cash as its production is stalled.
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Advertiser & Editorial Disclosure: The Bulkhead Seat earns an affiliate commission for anyone approved through the links above This compensation may impact how and where links appear on this site. We work to provide the best publicly available offers to our readers. We frequently update them, but this site does not include all available offers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed, or approved by any of these entities.
