CEO Kelly Ortberg’s pleas in a letter sent Wednesday that predicted turning the tide would be a long one, nor the proposed 35% raise over the next four years for about 33,000 Boeing workers in the Puget Sound region to end the strike that began Sept. 13, were enough.
IAM workers voted overwhelmingly to reject the new labor agreement, with 64% in favor of continuing the strike.
This time, the IAM did not recommend a vote after the embarrassment of the first vote, when they considered the 25% raise proposal the best possible.
The strike at the Renton and Everett plants, where the 737, 767 and 777 commercial jets are manufactured, enters its sixth week on Friday, further complicating Boeing’s financial situation.
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Ortberg’s letter sought to convince the planemaker’s workers that the recovery will be slow, like turning a large ship around, but that the CEO believes it is possible, given the company’s massive backlog of half a trillion dollars.
“This is a big ship that will take some time to turn, but when it does, it has the capacity to be great again,” Kelly said.
Daily losses of $100 million
However, Boeing revealed that its third-quarter losses were huge, at $6 billion, mainly due to its commercial aircraft division and BDS (Boeing Defense and Space).
Each day of the strike has meant losses of $100 million, according to analysts, and pressure from customers and suppliers is only likely to worsen the situation.
Boeing is struggling to avoid losing its investment grade rating in the face of so many problems. To this end, it is seeking around US$35 billion on the market in order to stabilize its finances in the coming years and have the strength to emerge from the crisis.
But, apparently, the challenge will be greater than ever.
