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

Posted in
Limousine
Related Posts
Limousine Comments are Closed

Plan the perfect NYC Memorial Day weekend

Pack only what you need and avoid overpacking to streamline the check-in and security screening…

News Comments are Closed

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…

UK 747 freighter operator One Air branching into scheduled flights

UK cargo operator One Air is venturing into scheduled services with its Boeing 747-400 freighter…

Fully-substituted MC-21 to carry out maiden flight in August: Rostec chief

Russian state technology firm Rostec’s chief, Sergei Chemezov, has stated that the fully-substituted version of…

Vertical Aerospace nears transition tests to fill final gap in VX4 flight profile

Vertical Aerospace is confident that it will wrap up the crucial final stage of its…

Pitch-up command after bounced landing preceded Aer Lingus A321LR tail-strike

Irish investigators believe a sudden pitch-up input during a bounced landing resulted in an Aer…

France puts Rafale fighter’s F4.3-standard updates through early assessment | News

Elements of the Dassault Aviation Rafale’s future F4.3 operating standard have undergone early assessment by…

A380 flight computers updated after ‘erroneous’ soft-thrust command on take-off

Airbus has developed a flight-computer software update for A380s after a training flight incident in…

ITA Airways, United secure approval for codeshare partnership | News

ITA Airways is working to establish a codeshare relationship with United Airlines, following last month’s…

Martinair A350F trimmed from Air France-KLM backlog

One of KLM cargo division Martinair’s Airbus A350 freighters has been dropped from the carrier’s…

Safran aims to recover Leap delivery backlog to Airbus by end-October

Safran is aiming to recover the backlog of CFM International Leap-1A engine deliveries to Airbus…

Post a comment

Your email address will not be published.