Boeing reported a net loss of over $6.1 billion in its third quarter Wednesday, as roughly a fifth of its employees went on strike.
This comes after the company reached a tentative deal with its 33,000 employees, represented by the International Association of Machinists and Aerospace Workers, who were employed at Boeing’s manufacturing factory, where its 737 MAX, 767, and 777 planes are produced. However, the latest losses “primarily reflect impacts of the IAM work stoppage,” according to Boeing.
“It will take time to return Boeing to its former legacy, but with the right focus and culture, we can be an iconic company and aerospace leader once again,” Boeing President and CEO Kelly Ortberg said. “Going forward, we will be focused on fundamentally changing the culture, stabilizing the business, and improving program execution while setting the foundation for the future of Boeing.”
Wednesday is the day the IAM workers will vote on the tentative deal, which includes a 35% wage increase over four years, a $7,000 signing bonus, and an increase in the company contributions to the members’ 401(k) plans. This proposal does not have the union leadership’s endorsement, however their endorsement bears little sway over the employees as the last endorsed deal was voted out by 95% of its members.
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The delay brought about by the strike resulted in a pretax earnings charge of $2.6 billion, according to the company. Another $400 million pretax charge will come as the company shutters its 767 production. Boeing made a $10 billion credit agreement with several banks last week to combat the losses.
In August, Boeing CEO Kelly Ortberg replaced Dave Calhoun following allegations of safety violations. Boeing had just received an audit from the Federal Aviation Administration in July. The administration found that the company had “failed to comply with manufacturing quality control requirements” on more than one occasion.
This article was originally published at www.washingtonexaminer.com
