Dollars

Wednesday

Strike

Billion

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<p class="has-drop-cap">The Boeing Company’s (NYSE: BA) struggles deepened Wednesday as union workers <a href="https://www.theguardian.com/business/2024/oct/24/boeing-strike-workers-reject-deal" target="_blank" aria-label="overwhelmingly rejected (opens in a new tab)" rel="noreferrer noopener nofollow" class="deco-link">overwhelmingly rejected</a> the company’s latest contract offer, extending a costly strike that has already lasted more than 40 days.</p> 
<p>The International Association of Machinists and Aerospace Workers (IAM) announced that 64% of its 33,000 members voted against the proposal, which included a 35% wage increase over four years, enhanced 401k contributions, and a $7,000 ratification bonus. The key sticking point remains Boeing’s refusal to reinstate the defined benefit pension plan that workers <a href="https://www.bloomberg.com/news/articles/2024-10-24/boeing-workers-vote-down-latest-offer-as-bid-to-end-strike-fails" target="_blank" aria-label="lost (opens in a new tab)" rel="noreferrer noopener nofollow" class="deco-link">lost</a> a decade ago.</p> 
<h3 id="boeing-strike-continues-has-resulted-in-billion-of-dollars-in-losses-to-the-firm">Boeing Strike Continues, Has Resulted in Billion of Dollars in Losses to the Firm</h3> 
<p>The strike, which <a href="https://tokenist.com/over-30000-boeing-workers-go-on-strike-stock-tumbles/" rel="dofollow" class="deco-link">began</a> on September 12, has severely impacted Boeing’s already troubled operations. The company reported a staggering $6 billion loss for the third quarter of 2024, with revenue dropping to <a href="https://tokenist.com/boeings-losses-widen-in-third-quarter-firms-seeks-operational-and-cultural-changes/" class="deco-link">$17.8 billion</a> from $18.1 billion year-over-year.</p> 
<p>The work stoppage has resulted in an estimated $7.6 billion in total direct economic losses, including $4.35 billion for Boeing and nearly $2 billion for its suppliers. The situation escalated on October 1 when Boeing cut off employee healthcare benefits, leaving union members to rely on $250 weekly strike pay.</p> 
<p>Adding to Boeing’s challenges, the company announced plans to lay off 17,000 workers, representing a 10% reduction in its commercial unit. The aerospace giant has been grappling with quality control and production problems across its commercial aviation operations, alongside a $2 billion loss in its defense and space business. These issues predated the current labor dispute, which shows no signs of resolution despite intervention from Acting U.S. Labor Secretary Julie Su.</p> 
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<h3 id="new-ceo-promises-reforms-to-boeing-s-culture-amid-widening-losses">New CEO Promises Reforms to Boeing’s Culture Amid Widening Losses</h3> 
<p>New CEO Kelly Ortberg, who took the helm two months ago, acknowledged that the company is “clearly at a crossroads” and promised fundamental changes to Boeing’s culture. Ortberg’s proposed reforms include creating a leaner organization, positioning managers closer to engineering labs and factory floors, and focusing on stabilizing the business.</p> 
<p>The market has responded negatively to these developments, with Boeing’s stock declining to $153.00 in <a href="https://tokenist.com/investing/how-to-trade-after-hours/" rel="dofollow" class="deco-link">pre-market trading</a> Thursday at the time of writing, down 2.58% from its previous close of $157.06. The company’s financial metrics reflect its struggles, with a negative profit margin of 4.68% and a year-to-date stock return of -39.75%, significantly underperforming the S&amp;P 500’s 21.54% gain during the same period.</p> 
<p>Boeing’s market capitalization now stands at $97.09 billion, with total cash reserves of $12.6 billion as it faces continued uncertainty over the strike’s resolution and its broader operational challenges.</p> <iframe src="https://tokenist.substack.com/embed" width="100%" height="320" style="border:1px solid #EEE; background:white;" frameborder="0" scrolling="no"></iframe> 
<p><em>Disclaimer: The author does not hold or have a position in any securities discussed in the article.</em></p> 
<h3 id="br"><br></h3> 
<p>The post <a rel="nofollow" href="https://tokenist.com/boeing-workers-reject-new-offer-as-firm-reports-massive-losses-strike-continues/">Boeing Workers Reject New Offer as Firm Reports Massive Losses, Strike Continues</a> appeared first on <a rel="nofollow" href="https://tokenist.com">Tokenist</a>.</p>

Boeing Workers Reject New Offer as Firm Reports Massive Losses, Strike Continues

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