(VitalNews.org) – Brian West, Boeing CFO, has said that a labor strike that began recently could hurt the aircraft’s recovery. His statement came not long after the factory workers rejected a new labor contract and walked off the job.
West stated that the financial impact of the strike would depend on how long the strike lasts, but he said it would affect production of its bestselling planes.
“The strike will impact production and deliveries and our operations and will jeopardize our recovery,” West said. “So our immediate focus is to the laser-like focus on actions to conserve cash, and we will.”
He said that their priority is to get back to the negotiating table and “reach an agreement that’s good for our people, their families, our community.”
West didn’t comment on whether they would be able to uphold their rate of producing thirty-eight 737 Max planes every month following the strike. Sheila Kahyaoglu, Jefferies aerospace analyst, said that a thirty day strike could cost Boeing one and a half billion dollars.
The International Association of Machinists and Aerospace Workers had a labor agreement with Boeing that included a twenty-five percent wage increase over four years as well as improvements for benefits like health insurance or retirement.
However, this fell through when workers pushed for a forty percent raise, arguing that the twenty-five percent they proposed wasn’t enough for the rise in cost of living.
The last strike that Boeing went through was about fifteen years ago and lasted for two months. The main concern is the disruption in production during the strike.
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