The financial impact of the strike launched on Friday at Boeing’s facilities in the north-west of the United States, in particular at the assembly plants for the best-selling 737 and 777, threatens the group’s recovery, said Brian West, chief financial officer of the aircraft manufacturer.
“The strike will affect production, deliveries and operations, and threaten our recovery,” he told a conference organised by a bank, adding that it would depend on the length of the strike.
More than 33,000 union members at the aircraft manufacturer in the Seattle region – out of the group’s 170,000 employees – rejected on Thursday by 94.6% the draft of a new collective agreement announced on September 8 and approved by 96% a strike that began at midnight. According to analysts at TD Cowen, a 50-day strike would deprive Boeing of between $3 billion and $3.5 billion of liquidity and have a $5.5 billion impact on revenue.
Disappointment
According to Brian West, Boeing’s management is “disappointed” by this rejection.
“But as the days went by, it became very clear that the offer was not a good fit for our unionized employees,” he continued, referring to a “disconnect” between the union leadership and its members.
Back to the negotiating table
Boeing now wants to quickly return to the negotiating table to “complete a deal,” West said, noting that new chief Kelly Ortberg visited the factories in question this week to discuss directly with workers.
“The strike is creating so much uncertainty” that Brian West declined to make financial forecasts for 2024 and 2025, in particular on the extent of the group’s liquidity loss. “Our main priority is to focus entirely on measures to preserve our liquidity,” he said, acknowledging that the situation is “very complex.”
Source: BFM TV
