An International Association of Machinists (IAM) union strike against Boeing Co. would cost the company and its shareholders $1.05 billion, as well as workers and suppliers, according to an analysis by consulting firm Anderson Economic Group. (AEG) was released on Thursday, which is expected to result in heavy losses.
IAM's union strike will cost Boeing and its shareholders an estimated $1.05 billion in losses, with workers and suppliers set to lose $351 million between September 13 and Friday. According to For AEG's analysis of the company's wage losses and shareholder return losses. The company's report does not estimate individual losses to consumers or customers during the first two weeks of the strike.
RENTON, WA – SEPTEMBER 13: A strike sign is photographed outside the Boeing Company factory in Renton, Washington on September 13, 2024. The Boeing Machinists Union voted overwhelmingly to reject the aircraft manufacturer's contract offer and go on strike. (Photo by Stephen Brashear/Getty Images)
Thousands of people staged a midnight strike against Boeing on September 13 after IAM leaders rejected a tentative agreement with the company. Boeing has been plagued by controversies this year, including ones stemming from various safety issues.
Boeing pled guilty in July to criminal fraud conspiracy charges and agreed to a plea deal in which it will pay $243.6 million in fines for two 737 MAX crashes in 2018 and 2019. Further damaging the company's reputation was when the Boeing Starliner faced mechanical problems. After being launched into space, the spaceship's astronauts were left stranded in space.
The U.S. Senate Permanent Subcommittee on Investigations (PSI) began investigating Boeing in March over concerns about production cuts. Officials say Boeing prioritized production speed over quality and failed to properly prepare its workforce. memo PSI was released on Tuesday.
IAM and Boeing are scheduled to meet on Friday for further negotiations. According to To The Hill. According to The Hill, the aerospace company and IAM continue to disagree on several issues, including pensions and pay increases.
“As is common in large-scale industrial strikes, the second week of the machinists' union strike against Boeing and its suppliers.”
“The fact that the company has a large backlog of orders and is losing both current production and future parts and service business means that Boeing shareholders are effectively losing money every day this strike continues.” ,” Anderson said in the release. “Boeing employees on strike are also losing. As the strike drags on, more Boeing suppliers will be forced to cut wages and hours.”
According to the analysis, AEG estimated several categories of direct losses to calculate the economic impact of the strike. These categories included AEG, which calculated losses for the company's shareholders, workers in areas near Boeing factories who lost income, and workers' wages. (Related article: Southwest executives resign after pressure from shareholders)
AEG, IAM and Boeing did not immediately respond to Daily Caller News Foundation requests for comment.
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