Peter McNally, Head of Global Analyst at Third Bridge, talks about how the Boeing factory workers' strike is impacting business on The Big Money Show.
The ongoing strike by Boeing machinists could end this week, but estimates suggest it could cause more economic damage than any other work stoppage in the U.S. so far this year. There is sex.
Boeing and the union, International Machinists and Aerospace Workers Local 751, reached a tentative agreement on Saturday. Striking workers are scheduled to vote Wednesday on whether to accept the latest proposal, which includes a 35% pay increase over four years, a new incentive plan and a $7,000 ratification bonus.
The Boeing logo is seen on the Boeing stand during the opening day of the Farnborough International Air Show 2024 in southwest London, July 22, 2024. Boeing machinists' strike is already the costliest U.S. strike of 2024, according to new estimates (Justin Tallis/AFP via Getty Images/Getty Images)
But even if workers agree to a deal, that's not guaranteed, said Patrick Anderson, president and CEO of Anderson Economic Group (AEG). The impact could extend far beyond current prices.
“If they ratify the contract and return to work by Friday, IAM's strike against Boeing will be the costliest strike to date in the contentious year 2024,” Anderson said. Ta.
Boeing offers big pay increases in tentative agreement with unions amid weeks of machinists' strike
AEG, which specializes in estimating the economic impact, estimated the cost of the Boeing strike through last Friday at $7.6 billion, and Anderson said adding another week would push the cost to well over $8 billion. said.
United Parcel Service (UPS) employees walk a “picket line practice” ahead of a possible UPS strike in Queens, New York, July 7, 2023. The Teamsters union represents more than 300,000 UPS drivers and warehouse workers. ((Photo Credit: TIMOTHY A. CLARY/AFP via Getty Images) / Getty Images)
If the Teamsters had threatened to go on strike against UPS, it would have been a much larger strike in terms of workers walking off the job, but the agreement averted that strike, Anderson said. pointed out.
The longshoremen's union strike, which began in early October and lasted three days, was “barely evident outside the port city,” Anderson said, adding, “Our estimate is that the longshoremen's strike will last for one to two weeks. would have had a smaller impact than a port strike.” IAM strikes against Boeing have already taken place. ”
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Anderson noted that the impact of the Boeing strike extended beyond weeks of picketing by Boeing's employees, hurting managers, engineers, suppliers and other businesses in the Seattle area.
Aerospace Machinists District 751 President John Holden (out of frame) announces that members will reject the Boeing contract proposal and go on strike following a vote at the union hall in Seattle, Washington. Union members reacted to the announcement. (Jason Redmond/AFP via Getty Images/Getty Images)
Since the strike began in mid-September, Boeing has imposed furloughs, laying off 10% of its workforce earlier this month, affecting about 17,000 workers, and 33,000 employees. announced that it would cut production in response to the strike.
“Boeing's strike was not only costly, it affected the company's standing as one of the largest exporters in the U.S. economy and a symbol of American manufacturing prowess,” Anderson said. said.
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He added: “The company has already been forced to postpone promised aircraft shipments, and even a strike would cost employees, shareholders and suppliers even more in the long term than the $8 billion they have already lost. “There may be a significant impact,” he added. It will end next week. ”
Reuters contributed to this report.
