Members of the International Association of Machinists began their strike against Boeing one month ago. A new analysis has revealed that this action has cost the company $5 billion. Shareholders, employees and suppliers are those burdened by the bulk of the financial loss arising from the strike.
The industrial action, which began on September 13, commenced when 33,000 employees walked off the job following numerous incidents that jeopardised the health of employees – including fatal accidents. No planes have been worked on at the company’s production facility in Everett, Washington since the strike started. Boeing’s negotiations with the striking IAM workers came to a halt last week after two days of federally mediated talks. Stephanie Pope, President and CEO of Boeing’s commercial airplane division, described the union’s demands as “non-negotiable.”
Boeing announced on Friday that approximately 17,000 employees — almost 10% of their workforce, will be let go in the coming months. Following the announcement, Boeing’s CEO, Kelly Ortberg, stated in an email to employees, “Our business is in a difficult position, and it is hard to overstate the challenges we face together”.
The strike is predicted to affect the Aerospace supply chain, production, and GDP.
By CEO NA Editorial Staff
