Boeing HQ
Today has been a relatively light day for news on Boeing. The IAM strike and its impacts highlight today’s news.
The impact of the strike goes well beyond Boeing to the supply chain, and 500,000 manufacturing workers in aviation across the country. According to National Association of Manufacturers the strike, entering its third week, could total a regional economic loss of more than $1.65 billion in the Pacific Northwest alone. “The disruption will resonate fare beyond Washington state,” said NAM CEO Jay Timmons.
With no talks scheduled, it appears that both sides are entrenched for a long stand-off. The only problem is Boeing is financially in difficulty that gets worse each day the strike continues. It may actually be cheaper in the long-run to accede to the union demands and get back to work. As Thomas Black states in a Bloomberg Law article, the strikers have all the power today.
We often speak of the toxic Boeing culture at AirInsight, and realize that cultural change will take a very long time if Boeing’s actions during this strike are any indication. The current situation, in which Boeing has fanned the flames by playing hardball, is a missed opportunity for new CEO Kelly Ortberg.
Finally, Senators Elizabeth Warren and Richard Blumenthal have urged the DOJ to take action against Boeing executives responsible for safety failures. They consider the plea deal for Boeing as inadequate and that despite the time between the MAX fatal crashes and Alaska Air blowout incident, the company did not act strongly enough to improve safety. They urge prosecution of Boeing executives.
Links to key news items follow:
- Boeing strike may have already caused more than $1.6 billion in economic losses – Columbia Basin Herald
- Boeing machinists strike continues with no end … or even talks in sight – My Northwest
- Boeing’s finances give strikers all the power: Thomas Black – Bloomberg Law
- Culture change will take a long time at Boeing – AirInsight
- US Senators urge DOJ action against Boeing executives over safety woes – Reuters
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