The strike by the workers of the aircraft giant Boeing strengthens the misfortune of the company

Even before the strike, it was not easy for this aviation giant, as whistleblowers previously said in Congress that “Boeing” puts profit before safety and quality issues in the production process, going against the rules of the company itself. This was revealed in several incidents and even in plane crashes with airplanes made by “Boeing”, because airlines had stopped flights with some models for a short time.

The company was also subject to various audits and investigations. But in early September, the situation continued to worsen as a workers’ strike began in the Seattle area.

In total, the company employs 171,000 workers and more than 30,000 mechanics are taking part in the strike. Workers want higher wages and the restoration of traditional pensions that were abolished a decade ago.

“I’m here for a good wage for all of us, not just the older workers. I’m from the new generation and I want the same things the old workers want. The prices are go up and Seattle is one of the most expensive cities to live in. Just a good life [gribam]reasonable salary. Not much, but reasonable pay,” said one of the strikers.

Negotiations with the trade union, although held, failed in early October, so it is unlikely that the strike could end soon. As a result of the strike, the company had to postpone the first delivery of the new “777X” model aircraft from next year to 2026.

This is not the first time that deliveries have been postponed, as they were supposed to start already in January 2020. One of the airline’s clients is the United Arab Emirates, which uses “777” models ” very broad.

The head of the airline, Tim Clark, did not express his anger, saying that he would have serious discussions with “Boeing”. Also, in 2027, it is planned to stop the production of cargo planes “767 Freighter”.

“Boeing” also works in the military and space fields. As for the military, it makes planes, for example, but the US military has said overall that they have no reason to worry about supply disruptions at this time.

However, the financial director of “Boeing” Brian West has said that some programs that ended with the government may have an impact. “Boeing” already lost a lot of money in previous years on projects under contract with the government due to inflation.

“We’re wondering how the Biden administration will get involved. It’s a dilemma for them, as usual [ASV prezidenta] The Joe Biden administration is on the side of the unions, and the union has an advantage right now,” said Julia Johnson, an analyst at the Bloomberg Group. “The administration is also walking on pretty thin ice – when and how to get involved . And Boeing’s problems are not only in the commercial sector. Trouble is also emerging in the defense sector, at a time when other defense companies are raising money, so to speak. So the question is whether the Pentagon will restructure those contracts with Boeing that were signed ten years ago when Boeing was swimming in cash. Because the company will be bleeding financially for at least two more years.”

Clearly, due to the strike and production problems, Boeing’s problems are likely to continue in the near future. Forecasts indicate that there will be a large loss in the third quarter.

The strike alone has already caused a loss of 3 billion dollars, but the company gets most of the money from the sale of planes.

This week, Boeing announced plans to raise up to $25 billion in funding. This is intended to be done by selling shares or bonds. The company has also concluded agreements with several banks to obtain a loan of ten billion dollars. In addition, 10% of jobs are expected to be cut.

Report a bug