The walkout is a severe blow to Boeing and an embarrassment for Mr Ortberg, who had made a last-ditch plea to workers before the vote, warning that a strike would put the company’s “recovery in jeopardy”.
The question now is how long it will go on for. Boeing seems ready to get back to the table.
But there is an obvious breakdown in trust between management and the workforce – and equally between the workforce and the union leadership, who had said this was the best contract it had ever negotiated and had urged members to accept the deal.
As well as a 25% pay rise over four years, the preliminary agreement that workers rejected included a commitment from Boeing to build its next commercial plane in the Seattle area if the project started during the lifetime of the contract.
The union had initially targeted a number of improvements to workers’ packages, including a 40% pay rise.
Mr West said it was clear there had been a “disconnect” and that Mr Ortberg was “personally” involved with finding a compromise.
On the face of it, it is hard to see a quick solution unless Boeing capitulates.
Analysts say an extended shutdown could cost the company and its suppliers billions.
On Friday, shares in the firm fell as Moody’s warned that the situation could lead to a downgrade of Boeing’s credit rating, an action that would make it more expensive for the firm to borrow.
The current contract between Boeing and the unions was reached in 2008 after an eight-week strike.
That walkout cost the company about $1.5bn (£1.14bn) a month, according to credit rating agency Moody’s.
In 2014, the two sides agreed to extend the deal, which expired at midnight on Thursday.
“It’s never a good time for a strike, at least from the perspective of management, the current situation makes it even more problematic,” said Greg Waldron, Asia Managing Editor at aviation news website FlightGlobal.
“Still, a great deal will depend on how long the strike lasts. Airline CEOs with 737 Maxes on order will be watching this closely,” Mr Waldron added.
The walkout is a severe blow to Boeing and an embarrassment for Mr Ortberg, who had made a last-ditch plea to workers before the vote, warning that a strike would put the company’s “recovery in jeopardy”.
The question now is how long it will go on for. Boeing seems ready to get back to the table.
But there is an obvious breakdown in trust between management and the workforce – and equally between the workforce and the union leadership, who had said this was the best contract it had ever negotiated and had urged members to accept the deal.
As well as a 25% pay rise over four years, the preliminary agreement that workers rejected included a commitment from Boeing to build its next commercial plane in the Seattle area if the project started during the lifetime of the contract.
The union had initially targeted a number of improvements to workers’ packages, including a 40% pay rise.
Mr West said it was clear there had been a “disconnect” and that Mr Ortberg was “personally” involved with finding a compromise.
On the face of it, it is hard to see a quick solution unless Boeing capitulates.
Analysts say an extended shutdown could cost the company and its suppliers billions.
On Friday, shares in the firm fell as Moody’s warned that the situation could lead to a downgrade of Boeing’s credit rating, an action that would make it more expensive for the firm to borrow.
The current contract between Boeing and the unions was reached in 2008 after an eight-week strike.
That walkout cost the company about $1.5bn (£1.14bn) a month, according to credit rating agency Moody’s.
In 2014, the two sides agreed to extend the deal, which expired at midnight on Thursday.
“It’s never a good time for a strike, at least from the perspective of management, the current situation makes it even more problematic,” said Greg Waldron, Asia Managing Editor at aviation news website FlightGlobal.
“Still, a great deal will depend on how long the strike lasts. Airline CEOs with 737 Maxes on order will be watching this closely,” Mr Waldron added.
Source link
Share This:
admin
Plan the perfect NYC Memorial Day weekend
Pack only what you need and avoid overpacking to streamline the check-in and security screening…
LA’s worst traffic areas and how to avoid them
Consider using alternative routes, such as Sepulveda Boulevard, which runs parallel to the 405 in…
Switzerland to trim Lockheed Martin F-35A purchase, with cost rises leaving 36-unit buy ‘not financially feasible’
Switzerland’s acquisition of Lockheed Martin F-35A stealth fighters will fall short of its contracted 36…
US Air Force places $240 million Lot 2 order for Kongsberg Joint Strike Missiles to arm F-35A fighters
The US Air Force (USAF) has awarded Kongsberg Defence & Aerospace a $240 million contract…
Belgium advances on 240-round Hellfire missile acquisition from Lockheed Martin
Belgium has secured clearance from the US Department of State for a potentially $79 million…
Anduril Industries UK picks GKN Aerospace as manufacturing partner for British Army ACP bid
Anduril Industries UK and GKN Aerospace are to collaborate in pursuit of an opportunity to…
Rotron Aerospace partners LIG Nex1 unmanned air systems South Korea MUCP drone collaboration
UK firm Rotron Aerospace has entered a pact with South Korea’s LIG Nex1 to collaborate…
Spanish navy eyes Standard 2 special forces variant for next batch of NH90s
Spain has confirmed its interest in the acquisition of an advanced special forces variant of…
Bangladesh signs LOI with Leonardo for Eurofighter Typhoon purchase
Bangladesh has signed a letter of intent (LOI) with Leonardo signalling its interest in acquiring…
Netherlands crew loads weapons on USAF F-35A in interoperability demonstration at Ramstein air base
Netherlands air force maintainers have demonstrated the ability to load weapons aboard a Lockheed Martin…
Air France A350 crippled by collapsed radome after bird-strike damage undetected
French investigators believe inadequate maintenance checks on an Air France Airbus A350-900’s radome led to…
Skyeton Prevail plans further Raybird UAV demonstrations after Iron Titan exercise success
Anglo-Ukrainian joint venture Skyeton Prevail Solutions is planning further UK demonstrations of its Raybird uncrewed…