Categories: Business

Boeing reports $6 billion quarterly loss as striking workers vote whether to accept contract offer

Mature man leading a demonstration using a megaphone

Boeing posted a third-quarter loss exceeding $6 billion while awaiting the outcome of a vote by striking factory workers on a new contract offer. AP News states that the strike which began in mid-September, has halted aircraft production, severely impacting the company’s operations.

Contract offer divides Boeing workers

Union workers from the International Association of Machinists and Aerospace Workers are voting on a proposal that includes a 35% pay raise over four years. While some workers support the offer, others, like Brian Hatcher, are critical of its failure to reinstate pensions that were scrapped a decade ago.

“I voted no,” Hatcher, a 15-year Boeing veteran, said. “We need our pensions back.”

New CEO Kelly Ortberg calls for change

Kelly Ortberg, Boeing’s new CEO, has faced early challenges with the strike. Addressing investors, he emphasized the need for a “fundamental culture change” at Boeing, saying that management must reconnect with factory workers to prevent future labor disputes. Ortberg also acknowledged the company’s mounting debt, performance issues, and the erosion of trust but remains hopeful about the company’s future.

SALZGITTER, GERMANY – NOVEMBER 1: Volkswagen workers attend a rally during a warning strike at the Volkswagen engine factory November 1, 2004 in Salzgitter, Germany. Workers at VW plants across the country halted production briefly as a warning to management, which has proposed a two-year wage freeze for VW workers. VW, which is facing a drop in market share for its cars, is trying to cut costs.

Boeing’s financial struggles continue

Boeing reported a $6.17 billion loss for the quarter ending September 30, marking its second-worst quarter ever. Despite generating $17.84 billion in revenue, the company burned through nearly $2 billion in cash, further straining its $58 billion debt. Ortberg announced plans for large-scale layoffs and financial restructuring to stave off bankruptcy.

Challenges ahead: The need for federal approval and labor resolution

Boeing must secure federal regulatory approval to address safety concerns tied to its 737 Max jet, a crucial step in restarting production and recovering financially. However, this will be impossible until striking workers return. The current contract offer, which includes bonuses and retention of performance rewards, has been met with mixed reactions.

Union leaders plan to announce voting results soon, with the outcome determining whether Boeing can resume operations or face continued disruptions.

Herbert Bauernebel

Herbert Bauernebel has been reporting from New York since 1999 and currently works for Bild.de, OE24 TV, and US Live. He also runs the news portal AmerikaReport.de. Bauernebel has covered nearly all major US events of the past quarter-century, including 9/11, Hurricane Katrina, Barack Obama’s election, Donald Trump’s surprise victory, the pandemic, last year’s election showdown, as well as natural disasters such as hurricanes and oil spills. He has also reported firsthand on international events, including the Asian tsunami, the Haiti earthquake, and the Fukushima disaster. He lives in Brooklyn with his family and holds degrees in communication and political science from the University of Vienna. Bauernebel is the author of a book about his experiences on 9/11, And the Air Was Full of Ash: 9/11 – The Day That Changed My Life.