The Boeing strike has already cost the company and its workers $572m – and the pace of losses is climbing
The strike at Boeing by 33,000 members of the International Association of Machinists union, which reaches its seventh day today, has already cost the company and workers $572m, according to an estimate from Anderson Economic Group. And the pace of losses will climb rapidly if there’s no settlement, as soon as the second week of the strike, said Patrick Anderson, the founder and president of the Michigan research firm, which has experience estimating the cost of economic disruptions like strikes. “The first week of losses for Boeing are substantial, but they’ll pale in comparison to what comes in the following weeks,” Anderson told CNN. Still, the losses are less than the $1.6b that Anderson estimates the first week of last year’s autoworker strikes at General Motors (GM), Ford (F) and Stellantis (STLA) cost the economy. The strike at Boeing (BA), on the other hand, has yet to have a measurable economic impact on airlines so far, Anderson said. Boeing deliveries to many airlines were already delayed, after a mid-air door plug blowout on a Boeing 737 Max in January led to increased oversight by the Federal Aviation Administration (FAA). The union told CNN Wednesday the two sides remain far apart at the negotiating table, and with the companysoon due to start rolling furloughs of many non-union staff, the losses could hit $1b early next week. The biggest losses so far come from the near-halt to Boeing’s commercial airplane production. Anderson estimates the company has lost $445m in the strike’s first week as it has been unable to complete and deliver aircraft to customers. Boeing gets most of the money from an aircraft sale only upon delivery of the plane. The losses for workers, primarily the 33,000 union members who have gone on strike, as well as for suppliers come to about $117m in the first week. The top pay scale for union members at the company is $51.30 an hour, or $2,052 for a 40-hour week, although there are various pay premiums on top of that as well as overtime.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2024-09-20/general/the-boeing-strike-has-already-cost-the-company-and-its-workers-572m-2013-and-the-pace-of-losses-is-climbing
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The Boeing strike has already cost the company and its workers $572m – and the pace of losses is climbing
The strike at Boeing by 33,000 members of the International Association of Machinists union, which reaches its seventh day today, has already cost the company and workers $572m, according to an estimate from Anderson Economic Group. And the pace of losses will climb rapidly if there’s no settlement, as soon as the second week of the strike, said Patrick Anderson, the founder and president of the Michigan research firm, which has experience estimating the cost of economic disruptions like strikes. “The first week of losses for Boeing are substantial, but they’ll pale in comparison to what comes in the following weeks,” Anderson told CNN. Still, the losses are less than the $1.6b that Anderson estimates the first week of last year’s autoworker strikes at General Motors (GM), Ford (F) and Stellantis (STLA) cost the economy. The strike at Boeing (BA), on the other hand, has yet to have a measurable economic impact on airlines so far, Anderson said. Boeing deliveries to many airlines were already delayed, after a mid-air door plug blowout on a Boeing 737 Max in January led to increased oversight by the Federal Aviation Administration (FAA). The union told CNN Wednesday the two sides remain far apart at the negotiating table, and with the companysoon due to start rolling furloughs of many non-union staff, the losses could hit $1b early next week. The biggest losses so far come from the near-halt to Boeing’s commercial airplane production. Anderson estimates the company has lost $445m in the strike’s first week as it has been unable to complete and deliver aircraft to customers. Boeing gets most of the money from an aircraft sale only upon delivery of the plane. The losses for workers, primarily the 33,000 union members who have gone on strike, as well as for suppliers come to about $117m in the first week. The top pay scale for union members at the company is $51.30 an hour, or $2,052 for a 40-hour week, although there are various pay premiums on top of that as well as overtime.<br/>
