Boeing enters $10 billion credit agreement as striking workers bleed company

  • 📰 dcexaminer
  • ⏱ Reading Time:
  • 68 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 31%
  • Publisher: 94%

Business News News

Business Business Latest News,Business Business Headlines

Political News and Conservative Analysis About Congress, the President, and the Federal Government

The International Association of Machinists and Aerospace Workers went on strike more than a month ago and is costing the embattled company roughly $1 billion a month. Some 33,000 unionized employees worked at Boeing’s manufacturing factory, which produces its 737 MAX and 767 and 777 planes. Their strike is delaying production and presenting a financial challenge to the company, which is already battling bad press.

In July, Boeing acquired Spirit AeroSystems and assumed its debt. Meanwhile, its customers expecting deliveries of planes via the 777X program will have to wait until 2026 due to the strike. This delay will likely result in a pretax earnings charge of $2.6 billion,CEO Kelly Ortberg announced he would cut 10% of Boeing’s global workforce, which includes some 17,000 jobs of executives, managers, and employees.

“Our business is in a difficult position, and it is hard to overstate the challenges we face together,” Ortberg said in a statement. “Beyond navigating our current environment, restoring our company requires tough decisions and we will have to make structural changes to ensure we can stay competitive and deliver for our customers over the long term.”Ortberg replaced Dave Calhoun following allegations of safety violations. Boeing was fresh from the receiving end of an audit from the in July.

Boeing’s latest offer to the union included a 30% raise, which was 5% more than its last offer, and a restoration of its performance bonus. However, the employees are seeking a 40% raise, vacation and sick leave accrual, progression, ratification bonus, and a 401 match, so the union rejected the offer last week despite Boeing’s promise that it was its “best and final offer.” There are no plans for further negotiations.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 6. in BUSİNESS

Business Business Latest News, Business Business Headlines