Union members hold picket signs during a news conference following a vote count on the union contract at the IAM District 751 Main Union Hall in Seattle, Washington, US, on Thursday, Sept. 12, 2024.
M. Scott Brauer | Bloomberg | Getty Images
Boeing CFO Brian West said a labor strike that began Friday will hurt aircraft deliveries and “jeopardize” the company’s recovery, hours after factory workers walked off the job and overwhelmingly rejected a new labor contract.
West said the financial impact of the strike will depend on how long it lasts, but that it will affect the company’s production of its best-selling planes. Speaking at an industry conference on Friday, West declined to say whether the company could meet a rate of producing 38 737 Max planes per month by the end of the year.
Jefferies aerospace analyst Sheila Kahyaoglu had previously estimated that a 30-day strike could be a $1.5 billion hit for Boeing.
Boeing and the International Association of Machinists and Aerospace Workers had unveiled a tentative labor agreement on Sunday that included 25% wage increases over four years and other improvements to health-care and retirement benefits. But workers had been looking for raises of 40% and argued that it didn’t cover the increased cost of living.
Workers in the Seattle area and in Oregon voted 94.6% to reject the proposal, and 96% voted in favor of a strike.
They walked off the job after midnight on Friday.
This is breaking news. Please refresh for updates.