BOEING WORKERS STRIKE

On September 13, workers at Boeing factories on the West Coast (USA) went on strike, causing aircraft production to stagnate.

Nearly 30,000 Boeing workers from the International Association of Aerospace Workers and Machinists (IAM) union have voted to strike. The group currently assembles the Boeing 737 MAX, 777 and 767 at factories in Seattle and Portland.

Boeing workers are unhappy with the tentative deal that IAM leaders reached with Boeing earlier this week. The tentative deal includes a 25 percent pay raise, a $3,000 signing bonus, and a commitment to assemble Boeing’s next commercial jet in Seattle. But many want the 40 percent pay raise originally proposed and the return of their cut annual bonuses.

Boeing workers wait for voting results in Washington (USA) on September 12. Photo: Reuters

This is the first time workers at the airline have gone on strike since 2008. "We need respect, we need to address the issues of the past and fight for our future," Jon Holden, a leader at IAM, said before announcing the vote results.

This comes just weeks after new CEO Kelly Ortberg took over. He was appointed to lead Boeing out of its current problems, including a safety crisis , production delays and a debt pile of up to $60 billion. "We are ready to negotiate a new deal," the US aircraft manufacturer confirmed.

Boeing shares have fallen 36% since the start of the year. The strike is adding to the company’s woes. In a letter to workers two days ago, Ortberg said the strike “puts the company’s recovery in jeopardy, further erodes customer confidence, and undermines our ability to shape our future.”

If the strike continues, it will not only hurt Boeing financially, but also the airlines waiting to receive the planes and the company's component suppliers. TD Cowen research said that if the strike lasts 50 days, the world's leading aircraft manufacturer could lose $3-3.5 billion.

Air India CEO Campbell Wilson said that even before the strike, Boeing 737 MAX deliveries were "already looking delayed" following the Alaska Airlines plane's fuselage failure in January. "Now it's likely to be even slower," he said.

The last time Boeing workers went on strike was in 2008, when they went on strike for 52 days. This cost the company about $100 million in lost revenue each day. S&P Global Ratings and Moody's both downgraded Boeing's credit rating to near "non-investment grade."

Source: Ha Thu (according to Reuters, CNBC)