Union members react as Aerospace Machinists District 751 President Jon Holden (outside) announces union members have rejected a proposed Boeing contract and will go on strike, following the results of a vote at their union hall in Seattle, Washington. on September 12, 2024.
Jason Redmond | Afp | Getty Images
Boeing workers went on strike Friday, the latest upset in what has proven to be a disastrous year for the American aircraft manufacturer.
However, it is unclear whether the work stoppage will have an impact on the flying public, although there are concerns about a possible impact on air travel next summer.
US carriers that rely heavily on Boeing airplanes include Southwest, United and Alaska Airlines.
In a statement, Southwest said its operations are unlikely to be affected in the short term by any production delays Boeing may suffer.
“Earlier this year, Southwest Airlines took steps to address potential delivery disruptions,” the carrier said. “As a result, we currently have the fleet required to meet our upcoming schedules. We remain in close communication with Boeing.”
Southwest operates exclusively Boeing 737s – planes built in Renton, Washington, one of the sites where members of the International Union of Mechanical and Aerospace Workers are now on strike. Southwest had sharply reduced its Boeing jet delivery target earlier this year.
A United spokesman said the carrier is working with Boeing to understand the impact on the airline’s delivery schedule.
An Alaska Airlines spokesman did not immediately respond to a request for comment.
Airlines are responsible for maintaining aircraft once they own them, and crews won’t sign off on allowing a plane to fly if it’s deemed unairworthy, said Henry Harteveldt, founder and president of the Atmosphere Research Group, a aviation industry. providing advice.
“There will likely be very little immediate impact on consumers as a result of the Boeing strike,” Harteveldt said. he told NBC News.
Estimates of how long the strike will last vary widely. The previous strike by Boeing engineers, in 2008, lasted nearly two months. However, in a note to clients, Bank of America analyst Ronald Epstein said the latter could prove to be just a week away.
That’s partly because Boeing is in a particularly vulnerable position, he noted: Its position has been severely damaged since the January air door explosion that sparked a national shutdown, federal investigations and ultimately the ouster of Boeing leadership. The FAA continues to have federal monitors of Boeing production. The company’s stock, which is a component of the blue chip Dow Jones Industrial Average, has fallen about 40% this year.
Boeing factory workers gather on a picket line during the first day of a strike near the entrance to a production facility in Renton, Washington, U.S., September 13, 2024.
Matt Mills McKnight | Reuters
Newly appointed CEO Kelly Ortberg had already struck a conciliatory tone with Boeing workers ahead of the strike, Epstein said.
“We see it likely that Boeing will have to make further concessions and come closer to the original IAM proposal,” Epstein wrote.
In a statement, Boeing acknowledged that members of the International Union of Mechanical Engineers had deemed its offer “unacceptable.”
“We remain committed to restoring our relationship with our employees and the union and are ready to return to the table to reach a new agreement.”
Company executives have warned that the strike could “jeopardize” its recovery from recent scandals and quality problems.
A White House official said the Biden administration is in contact with Boeing and engineers.
“We encourage them to negotiate in good faith — toward an agreement that gives workers the benefits they deserve and makes the company stronger,” the official said.
The strike was largely expected, despite a push by union leaders to broker a deal at the last minute. Members of the 33,000-strong workforce that make up the strike group said recent layoffs, a decision to shift some production to Boeing’s non-union facility in South Carolina and a push for even stronger compensation and protections had prompted them. workers to strike. Boeing had promised to build its next commercial plane in the Seattle area as part of the tentative agreement.
Boeing appeared to have already made contingency plans ahead of the strike: Reuters was mentioned on Tuesday that the company told suppliers it was delaying a key production milestone for its 737 MAX by six months.
If the strike continues, major carriers may not be able to meet capacity requirements for next year’s summer travel season, Harteveldt he said.
“If this strike is extended, depending on how many planes[Boeing]can deliver, airlines may find themselves with far fewer new planes until the upcoming summer peak season — and that could certainly affect the number of available flights and destinations,” he said sbynextsummer’sseasonwhichispeakseason—andthatcoulddefinitelyimpactthenumberofflightsanddestinationsavailable”hesaid[Boeing}οιαεροπορικέςεταιρείεςμπορείναβρεθούνμεπολύλιγότερανέααεροπλάναμέχριτηνερχόμενηκαλοκαιρινήσεζόνπουείναιηπερίοδοςαιχμής—καιαυτόθαμπορούσεσίγουραναεπηρεάσειτοναριθμότωνδιαθέσιμωνπτήσεωνκαιπροορισμών»είπε[Boeing}candeliverairlinesmayfindthemselveswithfarfewernewplanesbynextsummer’sseasonwhichispeakseason—andthatcoulddefinitelyimpactthenumberofflightsanddestinationsavailable”hesaid
